HOUSTON (Reuters) - Blackstone Group LP’s $3.3 billion deal to buy a controlling interest in pipeline operator Tallgrass Energy LP would put four Blackstone executives on the firm’s nine-member board, company officials said on Thursday.
The private equity firm on Thursday agreed to purchase Tallgrass’s general partner and take a 44 percent stake in the publicly traded limited partner. The deal was through Blackstone’s new $40 billion infrastructure fund.
The four Blackstone board members would replace directors from Tallgrass’s original investors, private equity firms Kelso & Co and The Energy & Minerals Group. The deal is expected to close in March, Tallgrass Chief Executive David Dehaemers said in a conference call with investors.
Reporting by Collin Eaton in Houston; Editing by James Dalgleish