Valero Energy Corp., Valero Energy Partners Announce Definitive Merger Agreement
October 18 2018 - 5:19PM
Dow Jones News
By Stephen Nakrosis
Valero Energy Corporation (VLO) and Valero Energy Partners LP
(VLP) said Thursday the companies had agreed to a merger deal that
will see Valero Energy Corp. acquire the Partners in a transaction
with an aggregate value of approximately $950 million.
Under the terms of the deal Valero will acquire, for cash, all
of the outstanding publicly held common units of the Partnership at
a price of $42.25 per common unit. This represents an approximate
12.4% premium to the 30 trading-day volume weighted average price
of the Partnership's common units as of October 17, the companies
said.
An indirect wholly owned subsidiary of Valero Corp. that is the
record holder of the common units of the Valero Energy Partners
that are beneficially owned by Valero has agreed to deliver a
written consent approving the transaction prior to the closing. The
companies said this written consent constitutes the requisite vote
of the Partnership's common units to approve the transaction.
The companies said the transaction will close "as soon as
possible following the satisfaction of certain customary closing
conditions."
Shares of Valero Energy Corp, which closed Thursday trading at
$103.39, down 0.34%, were up slightly in the after-hours session,
gaining 0.28% to $103.68. Valero Energy Partners shares were up
6.45% after hours, to $42.42. They closed Thursday trading at
$39.85, gaining 1.14%.
--Write to Stephen Nakrosis at stephen.nakrosis@wsj.com
(END) Dow Jones Newswires
October 18, 2018 17:04 ET (21:04 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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