Tulsa-based Williams Companies and Williams Partners announced Friday the completion of the sale of their Canadian businesses to Inter Pipeline Ltd. for combined cash proceeds of nearly $1.06 billion, or $1.38 billion in Canadian dollars, according to a report by The Tulsa World.
The deal was initially announced in early August. The partnership and the company plan to use the cash proceeds to reduce debt.
“Completing this transaction represents further progress on the commitment we made in early 2016 to strengthen our balance sheet and position Williams for continued growth,” said Alan Armstrong, Williams’ president and chief executive officer. “This action enhances our ability to deliver on our natural gas focused-strategy and emphasis on our core business.”
In connection with the sale, Williams agreed to waive $150 million of incentive distribution rights to facilitate the partnership’s consent to the sale in recognition of the value of inter-company contracts. After taking this waiver into account, the combined sales price between the entities is nearly $839 million for Williams Partners and almost $220 million for Williams.
The company and the partnership do not expect a taxable gain on the transactions.