Summary
Williams Companies, Inc. (WMB) has announced a significant strategic transaction via an 8-K filing on June 16, 2014, detailing a purchase agreement to acquire substantial equity interests in Access Midstream Partners, L.P. (ACMP) and its general partner, Access Midstream Ventures, L.L.C. (AMV), from GIP entities for $5.995 billion. This move positions Williams to indirectly own 100 percent of the general partner of ACMP and approximately 50 percent of its limited partner units. This acquisition is a key step towards Williams' broader strategy, which includes a proposed merger of its subsidiary, Williams Partners L.P. (WPZ), with ACMP upon completion of the GIP purchase.
Key Highlights
- 1Williams Companies entered into a $5.995 billion purchase agreement to acquire significant stakes in Access Midstream Partners, L.P. (ACMP) and its general partner entities.
- 2The transaction will result in Williams indirectly controlling ACMP's general partner and owning approximately 50% of ACMP's limited partner units.
- 3The acquisition is a precursor to a proposed merger between Williams Partners L.P. (WPZ) and ACMP, structured as a unit-for-unit exchange.
- 4WPZ unitholders in the proposed merger will have an option to receive either a special cash payment or additional ACMP common units.
- 5The closing of the GIP purchase is anticipated in Q3 2014 and is not conditioned on the WPZ-ACMP merger.
- 6The filing also addresses updated dividend guidance and the impact of delays and costs at the Geismar olefins plant, including insurance recovery uncertainties.