Stockholders of the Oklahoma pipeline company SemGroup voted to approve a $5 billion merger with Dallas-based pipeline giant Energy Transfer.
Source: Houston Chronicle
During a special Wednesday morning stockholders meeting, shareholders voted to the merger agreement.
Under the deal valued at $5 billion, SemGroup stockholders will receive $6.80 in cash and a 0.7275 share of Energy Transfer stock for every share of SemGroup stock.
The deal is expected to expand Energy Transfer’s crude oil and natural gas liquids pipeline capacity by adding crude oil gathering assets in the DJ Basin in Colorado and the Anadarko Basin in Oklahoma and Kansas in addition to crude oil and natural gas liquids pipelines connecting the DJ Basin and Anadarko Basin with crude oil terminals in Cushing, Okla.
Bank of America Merrill Lynch acted as exclusive financial advisor to Energy Transfer while Latham & Watkins LLP acted as legal counsel. Jefferies LLC acted as financial advisor to SemGroup while Kirkland & Ellis LLP acted as legal counsel.
Founded in 1995, Energy Transfer has nearly 11,800 employees across the United States and Canada. The company posted a $1.7 billion profit on $54.1 bilion of revenue in 2018.
SemGroup was founded in 2001 but now has nearly 900 employees in the United States and Canada. The company posted a $26.7 million loss on $2.5 billion of revenue in 2018.
