Will replace Tallgrass’s current partners Kelso and EMG
Private capital continues to surge into the midstream space, as Blackstone (stock ticker: BX) announced it will acquire a significant share of Tallgrass Energy (stock ticker: TGE).

Blackstone Infrastructure Partners will acquire a 44% interest in Tallgrass and a 100% interest in Tallgrass’s general partner for $3.3 billion in cash. Blackstone reports GIC, Singapore’s sovereign wealth fund, will be a minority investor in the deal. The deal will effectively replace Kelso and EMG, Tallgrass’s current private capital partners, and will receive the four board seats these two firms currently hold.

A payment of $3.3 billion implies an 11% premium to the company’s previous closing price. The...

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