Pipeline company Oneok to buy rest of Oneok Partners for $9.3 B
(Reuters) -- Natural gas pipeline company Oneok Inc said it would buy the remainder of the company for $9.3 billion, adding to a string of master limited partnerships deals aimed at simplifying structures and increasing returns.
Oneok, which owns more than 19% of Oneok Partners LP, said it would pay 0.985 shares for each Oneok Partners unit it does not already own.
Based on both the stocks' closing price on Tuesday, that works out to $54.28 per share, representing a premium of 26% for shareholders of Oneok Partners.
Oneok said the combined company will have an integrated 37,000 mile network of natural gas liquids, pipelines and processing plants in the Williston Basin, US Mid-Continent, Permian Basin, Midwest and Gulf Coast.
Oneok Partners' shares will no longer be publicly traded.
Oneok said the deal would result in a dividend increase of 21% to 74.5 cents per share, or $2.98 on an annual basis.
J.P. Morgan Securities LLC is acting as lead financial adviser and Skadden Arps, Slate, Meagher & Flom LLP will provide legal advice to Oneok on the transaction.
Barclays is providing financial advice and Andrews Kurth Kenyon LLP serves as legal adviser to the Oneok Partners Conflicts Committee.
The company said the deal, which is immediately accretive, is expected to close in the second quarter of 2017.
Reporting by Vishaka George in Bengaluru; Editing by Martina D'Couto
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