ONEOK announces closing of controlling interest in Enlink Midstream
Published by Alfred Hamer,
Editorial Assistant
World Pipelines,
ONEOK, Inc. has announced the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (the HSR Act) and the successful completion of its acquisition of Global Infrastructure Partners' (GIP) entire interest in EnLink Midstream, LLC (EnLink), for a total cash consideration of approximately US$3.3 billion.
"With the closing of this acquisition, ONEOK expands our integrated assets in key production basins, including the prolific Permian Basin, and establishes a new strategic asset position in Louisiana," said Pierce H. Norton II, ONEOK President and Chief Executive Officer. "As we add another meaningful platform to ONEOK's businesses, we're confident in the enhanced service offerings and value we can provide our stakeholders.
"Additionally, we continue working toward the successful completion of our acquisition of GIP's equity interests in Medallion Midstream, further enhancing ONEOK's leading integrated midstream infrastructure position," added Norton.
With the close of this transaction, ONEOK has control of EnLink's managing member, and the board members currently designated by GIP will be replaced with new board members chosen by ONEOK, including:
Pierce H. Norton II, president and chief executive officer of ONEOK and member of the ONEOK Board of Directors. Norton will serve as chairman of the EnLink Midstream Board of Directors.
Walter S. Hulse III, executive vice president, chief financial officer, treasurer, investor relations and corporate development, of ONEOK.
Lyndon C. Taylor, executive vice president, chief legal officer and assistant secretary of ONEOK.
With the closing of the purchase of GIP's interests in EnLink, ONEOK intends to pursue the acquisition of the publicly held common units of EnLink in a tax-free transaction. The fully combined ONEOK and EnLink asset bases are expected to enhance synergies, reduce leverage and increase accretion to ONEOK shareholders. In addition, a combination with ONEOK is expected to give EnLink unitholders access to ONEOK's stock which is part of the S&P 500 and has significantly greater trading liquidity and an attractive dividend yield.
As a result of the transaction with GIP, EnLink will be a consolidated subsidiary of ONEOK for GAAP financial reporting purposes. EnLink common units and shares of ONEOK common stock will continue to be publicly traded on the New York Stock Exchange.
Read the article online at: https://www.worldpipelines.com/business-news/16102024/oneok-announces-closing-of-controlling-interest-in-enlink-midstream/
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