ArcLight Energy Partners, through its subsidiary Magnolia Infrastructure (AMID Acquisition), has proposed to buyout American Midstream Partners at $6.10 per share in an all-cash deal.
In this regard, Magnolia Infrastructure has issued an offer letter to the board of directors of the American Midstream Partners to acquire the stake it previously didn’t own in the midstream company.
Based in Houston, Texas, American Midstream Partners is a growth-oriented limited partnership which is engaged in providing midstream infrastructure that connects producers of natural gas, crude oil, natural gas liquids (NGLs) and condensate to the markets.
ArcLight Energy Partners, in a statement, said: “There can be no assurance that any discussions that may occur between AMID Acquisition and the Issuer with respect to the offer contained in the Offer Letter will result in the entry into a definitive agreement concerning a transaction or, if such a definitive agreement is reached, will result in the consummation of a transaction provided for in such definitive agreement.”
The offer to take over American Midstream Partners comes just days after the private equity firm completed sale of North Sea Midstream Partners (NSMP) to a subsidiary of the Kuwait Investment Authority, managed by Wren House Infrastructure Management.
The offshore and onshore assets of American Midstream Partners are located across the Permian, East Texas, Eagle Ford, Bakken and Gulf Coast. The Texan company also owns stakes in nearly 8207km of interstate and intrastate pipelines in addition to ownership in other midstream infrastructure like gas processing plants, fractionation facilities and others.
As per the plan, the transaction would be completed through a merger of American Midstream Partners with an ArcLight subsidiary.
Last month, the US midstream company completed the sale of its marine products terminalling business to institutional investors advised by JP Morgan Asset Management for around $210m.
The sale of the Marine Products Terminals, which included the Harvey and Westwego terminals in the Port of New Orleans and the Brunswick terminal in the Port of Brunswick in Georgia, is part of a non-core asset divestiture program taken up by American Midstream Partners.