-=Tallgrass Energy (TGE) to be acquired by Blackstone Infrastructure Partners for $22.45/share

Tallgrass Energy announces agreement for the purchase of its publicly-held class a shares by Blackstone Infrastructure Partners (BIP) for $22.45/share

Co announced that it has entered into a definitive merger agreement pursuant to which affiliates of Blackstone Infrastructure Partners together with affiliates of Enagas, GIC, NPS and USS (collectively with Blackstone Infrastructure Partners, the "Sponsors") will acquire all of the publicly-held outstanding Class A Shares of TGE for $22.45 in cash per Class A Share.

The transaction is expected to close in the second quarter of 2020, subject to the satisfaction of customary conditions, including approval of the merger by holders of a majority of the outstanding Class A and Class B Shares of TGE, voting together as a single class, inclusive of the approximately 44 percent of the total Class A and Class B Shares held by the Sponsors. Upon closing of the transaction, the Class A Shares will cease to be publicly traded. Pursuant to the merger agreement, TGE has agreed not to pay distributions during the pendency of the transactions contemplated by the merger agreement.

This week's biggest % winners & losers : Aug 26 - 30, 19 (wk 35)

The following are this week's top percentage gainers and losers, categorized by sectors (over $300 mln market cap and 100K average daily volume).

This week's top % gainers

• Healthcare: PRTA (8.41 +22.06%), RCUS (7.81 +21.27%)
• Materials: TSE (35.09 +27.14%), RYAM (3.51 +21.45%),
• Industrials: GMS (29.46 +27.59%)
• Consumer Discretionary: CAL (20.15 +35.14%), TLYS (10.71 +29.5%), SCVL (30.74 +28.89%), GES (18.07 +25.23%), FOSL (12.8 +23.08%)
• Information Technology: AMBA (55.87 +25.13%), DAKT (7.23 +21.51%)
• Energy: TGE (19.58 +30.53%), PDCE (31.85 +26.14%), NE (1.6 +24.03%), SRCI (5.02 +20.96%)
• Consumer Staples: RAD (6.46 +21.66%)

This week's top % losers

• Healthcare: MNK (2.59 -39.34%), ENDP (2.37 -18.28%)
• Consumer Discretionary: OLLI (55.45 -29.38%), ULTA (237.73 -26.19%), OSTK (15.73 -20.92%), AOBC (6.01 -19.33%)
• Information Technology: MFGP (13.8 -27.37%)
• Financials: GGAL (10.84 -26.21%), SUPV (2.46 -26.13%), BMA (23.31 -24.59%), JT (3.01 -16.85%), EHTH (83.31 -13.16%)
• Energy: NINE (5.48 -14.51%), TGS (7.5 -13.99%)
• Utilities: CEPU (2.78 -22.99%), PAM (12.98 -19.53%)

Tallgrass Energy (TGE) receives a buyout offer from Blackstone (BX) for $19.50/sh

• Tallgrass Energy (TEGP) has IPO on 7 May 2015
• Tallgrass Energy (TEGP) acquires Tallgrass Energy Partners (TEP); TEGP change its name to Tallgrass Energy LP and trades on the NYSE under the symbol TGE.  27 March 2018
• Tallgrass Energy (TGE) receives a buyout offer from Blackstone (BX) for $19.50 per share.  27 Aug 2019

  

• Tallgrass had been trading for $24 recently and plummeted once Blackstone got involved in the first place.
• A questionable side deal with management potentially allows insiders to cash out at $26.25 while the general public gets far less for their shares.
• The situation isn't fully played out yet, Blackstone may have to sweeten their offer to close the deal.

Aug 27 (Reuters) - Midstream energy firm Tallgrass Energy said on Tuesday it had received an offer from Blackstone Infrastructure Partners, its partners and affiliates to acquire the shares in the company that they do not already own.

These shareholders, who together already own about a 44.2% stake in Tallgrass including 23.7 million Class A shares, have made a non-binding preliminary proposal to buy Tallgrass' remaining Class A shares at $19.50 per unit, the company said.

The offer represents a 35.9% premium to the company's last close on Tuesday.

The latest transaction will be valued at $3.03 billion based on the number of Class A shares of 179.2 million at the end of July 31, as reported in the company's latest filing.

In January, Blackstone Group LP said it would buy a controlling stake in Tallgrass for $3.3 billion. Tallgrass said https://www.businesswire.com/news/home/20190827005832/en its board intends to form a committee consisting of independent directors to consider the proposal.

Citigroup Inc is the financial adviser and Vinson & Elkins the legal adviser to the midstream energy firm.