Tallgrass Development, LP (Tallgrass) announced that its wholly owned subsidiary, Rockies Express Holdings, LLC, has signed a purchase agreement with a unit of Sempra U.S. Gas and Power (Sempra) to acquire Sempra's 25% percent membership interest in Rockies Express Pipeline LLC (REX) for cash consideration of $440 million, subject to adjustment under the purchase agreement.
“Since 2012 our team has believed in REX’s significance to natural gas transportation in America, and over the past three and a half years we have executed on the strategy to solidify the pipeline’s prominence and value for the long-term,” said Tallgrass’s President and CEO David G. Dehaemers, Jr. “Tallgrass is very pleased to have the opportunity to purchase an additional interest in REX as we continue to operate the pipeline and transform it into the northern-most, bi-directional natural gas header system in the United States.”
The transaction has been approved by the applicable boards of both Tallgrass and Sempra and is subject to closing conditions. In addition, the other member of REX, which owns a 25% membership interest, has a right to purchase its proportionate share of Sempra's 25% membership interest being sold to Tallgrass, which could reduce the membership interest acquired by Tallgrass from Sempra to 16 2/3%. Tallgrass expects the transaction to close in the second quarter of 2016.
Edited from source by Stephanie Roker
Read the article online at: https://www.worldpipelines.com/business-news/30032016/tallgrass-subsidiary-signs-purchase-agreement-for-pipeline/