Tallgrass Energy LP agreed to a sweetened take-private offer on Dec. 17 from a group led by Blackstone Infrastructure Partners, continuing a trend of take-private offers for public energy companies that emerged this year.
The Leawood, Kan.-based midstream company said it entered a merger agreement for Blackstone together with affiliates of Spain’s Enagas SA, GIC Private Ltd., NPS and USS to acquire the shares in Tallgrass that they do not already own. Together, the group already owns nearly 44% of Tallgrass’ Class A and Class B shares, according to a report by Reuters.
The transaction, expected to close second-quarter 2020, is part of a trend that emerged this year beginning in May with a deal by IFM Global Infrastructure Fund to take Buckeye Partners LP private for $6.5 billion. In October, Oklahoma City-based E&P company Roan Resources Inc. joined in with a $1 billion all-cash deal with private-equity-backed Citizen Energy LLC.