Tallgrass Energy LP (NYSE: TGE) is having an incredible start to the trading session today. At the moment, the stock’s up more than 35%. The gains come after the company announced that it received a take-private offer. Here’s what’s going on:
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TGE Stock Soars On Take Private Offer
As mentioned above, Tallgrass Energy is making a strong run for the top this morning after announcing that it received an offer. In a press release issued late yesterday, the company said that it received a non-binding preliminary proposal letter from Blackstone Infrastructure Partners.
The letter outlined an offer to acquire all of the outstanding shares of the company. The offer provided a strong, 35.9% premium at $19.50 per share. The premium represented by the offer is 12% over the stocks 30 day weighted average price.
As of now, Blackstone and other affiliates associated with the deal own an interest of 44.2% in TGE.
Something That’s Important To Keep In Mind
First and foremost, while the offer was made, it is only a preliminary offer. As such, there have been no binding agreements signed and no deal is official as of yet.
Moving forward, TGE will create a committee to review the offer from a non-biased perspective. From there, negotiations are likely to commence. So, While there has been an offer made, a binding agreement is still a bit away.
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