Oklahoma-based pipeline operator Williams has announced that it has agreed to acquire the outstanding shares of Williams Partners LP in a deal valued at $10.5bn.
The deal for the remaining 26% stake in the company will be an all-stock transaction, with Williams Partners shareholders receiving 1.49 Williams shares for each single share in the deal, representing a 13.6% premium compared to the company’s unaffected share price.
The merger is part of Williams’ corporate restructuring program that the firm says will simplify its holdings, streamline its governance, and consolidate its core assets.
“This strategic transaction will provide immediate benefits to Williams and Williams Partners investors,” said Alam Armstrong, Williams’ President and Chief Executive Officer.
“The transaction will allow Williams to directly invest the excess coverage in our expanding portfolio of large-scale, fully-contracted infrastructure projects that will drive significant EBITDA growth without the need to issue equity for the broad base of projects currently included in our guidance.”
Shares of Williams Companies were up 2.3% in the wake of the announcement.