Global Infrastructure Partners, the private equity joint venture between General Electric and Credit Suisse, is understood to be in talks with Chesapeake Energy to buy pipeline assets from the US gas producer valued at around $4bn.
The talks could result in a deal in time for Chesapeake’s annual meeting on Friday, the Financial Times reported this morning.
The move will help to appease shareholders concerned with low cash flows following a fall in natural gas prices, which threaten to stall the group’s ambitious growth plans.
GIP will pay around $2bn for Chesapeake’s 46.1 per cent stake in Chesapeake Midstream Partners, a separately listed pipeline business that spun out two years ago, as well as an additional $2bn for other pipeline assets held by the parent company.
GIP helped found Chesapeake Midstream and held a 22.9 per cent interest in the company as of the end of February, the report added.
GIP recently hit a $5.5bn second close for the largest infrastructure fund in the market – exceeding its $5bn target and putting it on track to hit its $6bn hard cap, AltAssets reported last month.
According to industry sources, the interim close follows a $3bn first close in December last year that allowed the firm to finance the acquisition of Edinburgh Airport, which it bought from BAA Airports for £807.2m last month.
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