initial public offerings (IPOs) trading on American exchanges

Thursday, August 29, 2019

Tallgrass Energy (TGE) receives a buyout offer from Blackstone (BX) for $19.50/sh

  • Tallgrass Energy (TEGP) has IPO on 7 May 2015
  • Tallgrass Energy (TEGP) acquires Tallgrass Energy Partners (TEP); TEGP change its name to Tallgrass Energy LP and trades on the NYSE under the symbol TGE.  27 March 2018
  • Tallgrass Energy (TGE) receives a buyout offer from Blackstone (BX) for $19.50 per share.  27 Aug 2019


  • Tallgrass had been trading for $24 recently and plummeted once Blackstone got involved in the first place.
  • A questionable side deal with management potentially allows insiders to cash out at $26.25 while the general public gets far less for their shares.
  • The situation isn't fully played out yet, Blackstone may have to sweeten their offer to close the deal.
Aug 27 (Reuters) - Midstream energy firm Tallgrass Energy said on Tuesday it had received an offer from Blackstone Infrastructure Partners, its partners and affiliates to acquire the shares in the company that they do not already own.
These shareholders, who together already own about a 44.2% stake in Tallgrass including 23.7 million Class A shares, have made a non-binding preliminary proposal to buy Tallgrass' remaining Class A shares at $19.50 per unit, the company said.
The offer represents a 35.9% premium to the company's last close on Tuesday.
The latest transaction will be valued at $3.03 billion based on the number of Class A shares of 179.2 million at the end of July 31, as reported in the company's latest filing.
In January, Blackstone Group LP said it would buy a controlling stake in Tallgrass for $3.3 billion. Tallgrass said its board intends to form a committee consisting of independent directors to consider the proposal.
Citigroup Inc is the financial adviser and Vinson & Elkins the legal adviser to the midstream energy firm.

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