TransCanada Corp. has recently offered to purchase the remaining equity in Columbia Pipeline Partners LP (CPPL) that it doesn't already own for approximately US$848 million. This offer highlights TransCanada’s plans to buy out the other investors in CPPL for US$15.75 per common unit.
This offer has come soon after TransCanada’s purchase of the Columbia Pipeline Group – a deal valued at US$13 billion, including US$2.8 billion in debt. This transaction was completed in July 2016.
While TransCanada hopes that this deal will enhance its position in a pipeline network that stretches from New York to the Gulf of Mexico, the proposed transaction is subject to certain conditions, including approval under US anti-trust law and by CPPL unitholders.
According to Reuters: “A committee of independent directors of Columbia Pipeline Partners' board will be formed to consider the offer as the general partner of Columbia Pipeline Partners is an indirect unit of Columbia Pipeline Group, TransCanada said.”
Edited from various sources by Anna NicklinSources: BNN, Reuters, Oil and Gas Investor
Read the article online at: https://www.worldpipelines.com/business-news/27092016/transcanada-offers-to-buy-columbia-pipeline-partners/