8-KMaterial AgreementsRegulation FDExhibits & Filings

WILLIAMS COMPANIES, INC. 8-K Report, Material Agreement (Apr 18, 2017)

Filed April 18, 2017For Securities:WMB

Summary

Williams Companies, Inc. (WMB) announced a significant divestiture through its subsidiary, Williams Partners L.P., entering into a Membership Interest Purchase Agreement on April 13, 2017. The agreement outlines the sale of 100% of the membership interests in Williams Olefins, L.L.C. to NOVA Chemicals Inc. for a purchase price of $2.1 billion, subject to working capital adjustments. This strategic move signals a potential reshaping of the company's asset portfolio, allowing for a focus on core midstream operations and deleveraging efforts. Investors should note the closing conditions, including regulatory approvals from HSR and CFIUS, and a target closing date of summer 2017. The transaction is guaranteed by both Williams Partners L.P. and NOVA Chemicals Corporation. This sale is a material event for WMB, and its impact on future financial performance and strategic direction will be closely watched by the market.

Key Highlights

  • 1Williams Partners L.P. to sell 100% of Williams Olefins, L.L.C. to NOVA Chemicals Inc.
  • 2The sale price is $2.1 billion, subject to a working capital adjustment.
  • 3The transaction is structured as a Membership Interest Purchase Agreement.
  • 4Guarantees for the agreement are provided by Williams Partners L.P. and NOVA Chemicals Corporation.
  • 5Closing is anticipated in the summer of 2017.
  • 6Customary closing conditions include HSR and CFIUS approvals, with a termination date of December 22, 2017.
  • 7The sale is a material definitive agreement, impacting WMB's asset base and financial strategy.

Frequently Asked Questions

Williams Partners L.P., through its subsidiary Williams Field Services Group, LLC, is selling 100% of the membership interests in Williams Olefins, L.L.C. to NOVA Chemicals Inc.

The purchase price for the membership interests is $2.1 billion, which is subject to a working capital adjustment.

Closing of the transaction is anticipated to occur in the summer of 2017.

The closing is subject to customary conditions, including the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and approval by the Committee on Foreign Investment in the United States. The agreement also has a termination date of December 22, 2017.