August 28, 2019 / 2:04 AM / 23 days ago

Tallgrass Energy receives take-private offer from Blackstone

A pumping station owned by Tallgrass Energy is pictured in Guernsey, Wyoming, U.S. on January 17, 2017. REUTERS/David Gaffen

(Reuters) - Midstream energy firm Tallgrass Energy said on Tuesday it had received an offer from Blackstone Infrastructure Partners, its partners and affiliates to acquire the shares in the company that they do not already own.

These shareholders, who together already own about a 44.2% stake in Tallgrass including 23.7 million Class A shares, have made a non-binding preliminary proposal to buy Tallgrass’ remaining Class A shares at $19.50 per unit, the company said.

The offer represents a 35.9% premium to the company’s last close on Tuesday.

The latest transaction will be valued at $3.03 billion based on the number of Class A shares of 179.2 million at the end of July 31, as reported in the company’s latest filing.

In January, Blackstone Group LP said it would buy a controlling stake in Tallgrass for $3.3 billion.

Tallgrass said its board intends to form a committee consisting of independent directors to consider the proposal.

Citigroup Inc is the financial adviser and Vinson & Elkins the legal adviser to the midstream energy firm.

Reporting by Arundhati Sarkar and Aishwarya Nair in Bengaluru; Editing by Leslie Adler and Sriraj Kalluvila

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