Energy Transfer LP ET said Monday that it has entered an agreement to acquire SemGroup Corp SEMG in a unit and cash transaction valued at $5.1 billion, including the assumption of debt and other liabilities.
The transaction values SemGroup at $17 per share and represents a 65% premium to SemGroup's closing share price of $10.28 on Sept. 13 and an 87% premium to SemGroup's 20-day volume weighted average price as of the same date.
Upon closing of the deal, SemGroup shareholders are expected to own approximately 2.2% of Energy Transfer’s outstanding common units.
The deal has unanimously approval from the boards of both companies, according to the press release. SemGroup shareholders will receive $6.80 per share in cash.
"This strategically and financially compelling combination will result in SemGroup joining one of the largest midstream energy companies in the country, with a strong footprint in all major U.S. production basins,” SemGroup CEO Carlin Conner said in a statement.
Energy Transfer shares were trading down 3% at $13.60 in Monday’s premarket session, while SemGroup shares were rallying by 62.22% to $16.66.
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