Energy Transfer Receives Consents to the Acquisition of Enable Midstream from Majority Unitholders.
MANews-(C)2009-2021
US-based natural gas and propane pipeline transport partnership Energy Transfer LP (NYSE: ET) and US-based natural gas and crude oil infrastructure Enable Midstream Partners, LP (NYSE: ENBL)
The two largest unitholders of US-based natural gas and crude oil infrastructure Enable Midstream Partners, LP (NYSE: ENBL) have delivered their written consents to approve the merger of Enable into US-based natural gas and propane pipeline transport partnership Energy Transfer LP (NYSE: ET) following the Securities and Exchange Commission declaring effective the Registration Statement on form S-4 on April 7, 2021, the companies said.
These unitholders, CenterPoint Energy, Inc. and OGE Energy Corp, own approximately 79% of Enable's outstanding common units.
While the consents of CNP and OGE are sufficient to approve the transaction, Enable is requesting all its common unitholders approve the merger and other proposals outlined in the Registration Statement by executing and returning the written consent furnished with the filing.
Energy Transfer and Enable expect the transaction to close in mid-2021, subject to the satisfaction of customary closing conditions, including Hart-Scott-Rodino clearance.
In February, Energy Transfer LP and Enable Midstream Partners entered into a definitive merger agreement whereby Energy Transfer will acquire Enable in an all-equity transaction valued at approximately USD 7.2bn.
Under the terms of the agreement, Enable common unitholders will receive 0.8595 ET common units for each Enable common unit, an exchange ratio that represents an at-the-market transaction, based on the 10-day volume-weighted average price of ET and Enable common units on February 12, 2021.
In addition, each outstanding Enable series A preferred unit will be exchanged for 0.0265 Series G preferred units of Energy Transfer.
The transaction will include a USD 10m cash payment for Enable's general partner.
The transaction furthers Energy Transfer's deleveraging efforts as it is expected to be immediately accretive to free cash flow post-distributions, have a positive impact on credit metrics and add significant fee-based cash flows from fixed-fee contracts.
The all-equity nature of the transaction allows unitholders of both partnerships to participate in the value creation potential of the combined partnership.
Energy Transfer's acquisition of Enable will increase Energy Transfer's footprint across multiple regions and provide...
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