Summary
Energy Transfer Partners, L.P. (ETP) and Energy Transfer Equity, L.P. (ETE), through their affiliate Southern Union Company, announced on December 17, 2012, the signing of definitive purchase and sale agreements with subsidiaries of The Laclede Group, Inc. These agreements stipulate the sale of Southern Union's Missouri Gas Energy division to Plaza Missouri Acquisition, Inc. and its New England Gas Company division to Plaza Massachusetts Acquisition, Inc. The combined sale price for these assets is $1.035 billion, less approximately $19 million in assumed debt, totaling a net transaction value of approximately $1.016 billion. This divestiture represents a significant strategic move for Energy Transfer, likely aimed at streamlining operations and focusing on core assets. Investors should note that the closing of these transactions is contingent upon customary closing conditions, including regulatory approvals from the Missouri Public Service Commission and the Massachusetts Department of Public Utilities, as well as the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvement Act. The expected closing date is by the end of the third quarter of 2013, indicating a substantial period for regulatory review and completion.
Key Highlights
- 1Energy Transfer Partners (ETP) and Energy Transfer Equity (ETE) are selling two of Southern Union's natural gas distribution divisions.
- 2The sale involves the Missouri Gas Energy division and the New England Gas Company division.
- 3The total purchase price is $1.035 billion, subject to customary closing adjustments, and includes the assumption of approximately $19 million in debt by the buyers.
- 4The buyers are subsidiaries of The Laclede Group, Inc.: Plaza Missouri Acquisition, Inc. and Plaza Massachusetts Acquisition, Inc.
- 5The transaction is subject to several conditions, including regulatory approvals from Missouri and Massachusetts utility commissions, and antitrust clearance.
- 6The anticipated closing date for these transactions is by the end of the third quarter of 2013.
- 7This divestiture is likely part of a strategy to focus Energy Transfer's portfolio and generate capital.