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Sept. 16 (Reuters) – Energy Transfer LP, a pipeline and gas company, announced on Monday that it would buy $ 1.35 billion to rival its smallest rival, SemGroup Corp.
Energy Transfer will take control of the SemGroup oil terminal on the Houston Ship Channel, and to connect it to its Dutch terminal in Texas, Energy Transfer has announced the construction of a pipeline between the two terminals.
Energy Transfer will also add SemGroup's crude oil collection assets to the Colorado and Anadarko DJ pools in Oklahoma and Kansas, as well as crude oil pipelines and natural gas liquids linking the DJ pools and Anadarko at Cushing terminals, Oklahoma.
The transaction, which includes $ 6.80 in cash and 0.7275 Energy Transfer shares for each outstanding share of SemGroup, represents a premium of 65.4% at Friday's closing of SemGroup.
Taking into account the debt of SemGroup, the company value of the transaction is $ 5 billion.
The transaction is expected to be finalized in late 2019 or early 2020.
Shares of SemGroup jumped 62.4% to $ 16.70, while those of Energy Transfer fell 2.3% to $ 13.70 in trading before the stamp. (Report by Shradha Singh in Bengaluru, edited by Shinjini Ganguli)
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