Enterprise Partners is set to acquire Teppco Partners to be the largest US publicly traded energy partnership. Teppco, a Houston-based company that operates petroleum pipelines, accepted a sweetened $3.3 billion bid from the venture capital firm.
The deal, which would create a giant in the midstream energy sector, comes as values for the tax-friendly master limited partnerships rebound from a selloff that saw many of them lose more than half their value last year.
Enterprise will pay $31.36 per Teppco unit which bears a 9.3% premium over the Friday’s closing price. Enterprise’s initial takeover bid only amounted to $2.75 billion.
With the alliance, Enterprise would take control of 48,000 miles of oil and natural gas pipelines, 200 million barrels of oil, petroleum products and natural gas liquids storage. This positions Enterprise to be leading player in the energy sector.
Source: CNN
