Shareholders have overwhelmingly approved a merger of Tallgrass Energy Partners, LLP and Tallgrass Energy GP, LP in Kansas City, firms that operate oil pipelines leading to Cushing, Oklahoma.
It was a stock-for-unit merger transaction in which TallGrass Energy GP will acquire the nearly 47.6 million of Tallgrass Energy Partners common units held by the public. Tallgrass Energy is a family of companies operating in Oklahoma and ten other states. It primarily transports crude oil from Wyoming to Oklahoma.
The companies said 85 percent of the outstanding TEP common units were voted and more than 99 percent were in favor of the merger.
“Today’s vote validates our decision to merge TEGP and TEP,” said President and CEO David G. Dehaemers Jr. “Overwhelming unitholder support confirms our belief that this was a creative and uniformly positive transaction resulting in favorable economics for equity holders of both securities. With a streamlined corporate structure, lower cost of capital, broader investor appeal, strong balance sheet and healthy dividend coverage, Tallgrass Energy is well-positioned to continue its path as one of the nation’s leading pipeline owner/operators.”
The merger will close at the end of this week. Afterward, Tallgras Energy GP will change its name to Tallgrass Energy, LP.
