TransCanada Offers to Purchase All Common Units of Columbia Pipeline Partners

TransCanada Corporation’s wholly-owned subsidiary, Columbia Pipeline Group, Inc. has offered to acquire, for cash, all of the 53,843,466 outstanding common units of the master limited partnership, Columbia Pipeline Partners, LP at a price of US$15.75 per common unit. The offer price represents an 11.3 per cent premium to the 30 day average closing price on September 23, 2016.

The offer has been made to the board of directors of the general partner of Columbia Pipeline Partners, LP.  As the general partner of Columbia Pipeline Partners, LP is an indirect wholly-owned subsidiary of Columbia Pipeline Group Inc., a committee composed of the independent directors of Columbia Pipeline Partners, LP will be formed to consider the offer. The transaction is also subject to the execution of an agreement and plan of merger which would provide the definitive terms of the transaction, including the offer price. If an agreement is reached and such terms are ultimately approved by each of the TransCanada, Columbia Pipeline Group Inc. and  Columbia Pipeline Partners, LP boards of directors, the transaction will also require approval by a majority of the Columbia Pipeline Partners, LP common unitholders. Closing of a potential transaction will also be conditioned upon regulatory approval under the Hart-Scott-Rodino Antitrust Improvements Act, as amended.

TransCanada has retained Morgan Stanley to act as its financial advisor and Vinson & Elkins to act as its legal advisor.

 

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