TransCanada offers US$848M to buy rest of Columbia Pipeline.

TransCanada Corp. is putting forth about $848 million US cash to purchase all the equity in Columbia Pipeline Partners LP that it doesn’t officially own, reinforcing its hold on a pipeline network that extends from New York to the Gulf of Mexico.

The Calgary-based company offer to different investors in the Houston-based limited partnership takes after TransCanada’s buy of the Columbia Pipeline Group. That arrangement was valued at US$13-billion, incorporating US$2.8 billion owing debt.

Calgary-based TransCanada successfully turned into the main partner of Columbia Pipeline Partners LP on July 1 and Monday’s declaration shows it plans to purchase out other investors in CPPL for $15.75 US per common unit. It says the offer is 11.3% over the 30-day average closing cost for the partnership units. The units closed Friday at $15.30 US.

The proposed transaction is liable to specific conditions, including approval under U.S. anti-trust law and by a majority of CPPL unitholders. The limited partnership has interests in three regulated U.S. natural gas pipelines that serve markets reaching out from New York to the Gulf of Mexico, as well as storage and related midstream assets.
At today’s exchange rate, the $848-million US offer is worth about $1.12 billion in Canadian dollars