Houston-based LNG player, Cheniere Energy, made an offer to the board of directors of Cheniere Energy Partners to acquire the publicly held shares of the partnership not already owned by Cheniere in a stock for stock exchange.
Cheniere is proposing consideration of 0.5049 Cheniere shares for each outstanding publicly-held share of Cheniere Partners Holdings as part of a transaction that would be structured as a merger of Cheniere Partners with a wholly-owned subsidiary of Cheniere.
The proposed consideration represents a value of US$21.90 per common share of Cheniere Partners or a premium of approximately 3 percent.
Jack A. Fusco, president and chief executive officer of Cheniere said, “In addition, shareholders of Cheniere Partners would receive an attractive premium over its recent trading levels and a significant increase in the trading liquidity of their investment.”
Over the 30-trading day average CQH / LNG exchange ratio as of September 29, 2016, the shareholder premium would be at 7 percent, Cheniere said.
However, the proposed transaction is subject to negotiation and execution of a definitive agreement and approval by the boards of Cheniere Energy, Cheniere Partners and the conflicts committee established by Cheniere Partners.