Global Infrastructure Partners (GIP) is to sell 50 per cent of the Access Midstream Partners general partner and 34.5 million Access Midstream Partners subordinated units to natural gas company Williams for $1.82bn in cash.
This deal represents all of GIP I’s remaining ownership in Access Midstream Partners. Following the transaction, GIP’s second fund, Global Infrastructure Partners II, will continue to control 50 per cent of the GP and a substantial number of Access units.
Alongside the deal, Access also agreed to acquire Chesapeake Midstream Operating from Chesapeake Energy Corporation for $2.16bn in cash. The CMO acquisition is described as a “transformational opportunity” for Access and will create the largest gathering and processing growth platform in North America.
As part of the deal GIP and Williams have agreed to purchase up to $1.16bn in equity securities to support the transaction including $350m of pay-in-kind equity securities.
Following the transactions, Access will become the largest gathering and processing MLP as measured by invested capital and throughput volume and have a substantially diversified portfolio with strategic positions in virtually every cost advantaged basin in the country.
Matthew Harris, the GIP Partner that lead the transaction, said, “Access has a proven business model and an accomplished management team. We are very excited to be forming a strategic partnership with Williams and believe today’s announcements will provide a strong foundation for further growth in the years to come.”
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