ArcLight Energy Partners Fund has issued a revised offer of $4.50 per share to acquire the stake it previously didn’t own in US midstream infrastructure company American Midstream Partners.
In September 2018, the private equity firm’s affiliate Magnolia Infrastructure (AMID Acquisition) proposed to buyout American Midstream Partners at a price of $6.10 per share in an all-cash deal.
ArcLight Energy has retained all other proposed terms of the possible transaction as per the original offer.
The proposed deal will continue to be subject to various contingencies such as the approval of the conflicts committee of the midstream infrastructure company’s board. It would also need the approval by holders of a majority of the outstanding shares of the midstream company along with satisfaction of any conditions defined in the definitive agreement.
American Midstream Partners, in a statement, said: “There can be no assurance that definitive documentation will be executed or that any transaction will materialize on the terms described above or at all.”
The Texas-based company is a growth-oriented limited partnership focused on providing midstream infrastructure that links natural gas, crude oil, natural gas liquids (NGLs) and condensate producers to the markets.
American Midstream Partners’ offshore and onshore assets are located in the Permian, East Texas, Eagle Ford, Bakken and Gulf Coast regions.
The company has stakes in approximately 8207km of interstate and intrastate pipelines apart from ownership interests in other midstream infrastructure such as gas processing plants, fractionation facilities and others.
Last month, the Texan midstream company completed a previously announced $125m sale of its refined products terminalling business to Sunoco.
The sale of the refined products terminals located in Caddo Mills, Texas and North Little Rock, Arkansas, is part of the company’s non-core asset divestiture program.
In August 2018, American Midstream Partners sold its marine products terminalling business to institutional investors advised by JP Morgan Asset Management for about $210m.
As part of the deal, the midstream company offloaded the Harvey and Westwego terminals in the Port of New Orleans and the Brunswick terminal in the Port of Brunswick in Georgia.