Tallgrass Energy (NYSE:TGE) buyout news has TGE stock taking off on Monday.
Tallgrass Energy says that is has reached an agreement with Blackstone Infrastructure Partners and other affiliates to acquire shares of TGE stock. This will have the group acquiring all outstanding shares of TGE stock for $22.45 per share.
The offer for TGE stock will have Blackstone and the others paying in cash for the shares. Blackstone is expected to use $3 billion in equity to cover the deal and will handle the remaining of the offer with debt. TGE stock will no longer be publically traded once the deal closes.
The Tallgrass Energy buyout offer is a pretty premium for shareholders of TGE stock. The stock last closed out trading at $18.29 on Monday. That has Blackstone’s offering representing a 22.75% premium over its previous close.
A Tallgrass Energy buyout will have to satisfy customary closing conditions before completion. That includes gett approval from regulators, as well as from shareholders of TGE stock. So long as this all goes well, the company is expecting the deal to close during the second quarter of 2020.
Tallgrass Energy’s Conflicts Committee of the Board of Directors has given its unanimous support to the deal with Blackstone.
TGE stock was up 21% as of Tuesday afternoon. The stock is currently down 24.33% since the start of the year.
As of this writing, William White did not hold a position in any of the aforementioned securities.
