September 19, 2018 / 9:29 PM / 3 months ago

Dominion Energy to buy rest of Dominion Energy Midstream Partners

(Reuters) - Dominion Energy (D.N) said on Wednesday it had offered to buy the rest of Dominion Energy Midstream Partners (DM.N) in an all-stock deal, valuing the company at about $2.2 billion.

Dominion Energy, which owns a stake of about 15 percent in the company, offered 0.2468 of its shares per Dominion Energy Midstream common unit, valuing each unit at $17.75 based on closing prices as of Sept. 18, the company said.

The offer represented a discount of nearly 2 percent to Dominion Energy Midstream’s Wednesday close of $18.05, but was at a premium of 8.2 percent based on the 30-day volume-weighted average unit price.

Shares of Dominion Energy Midstream were down 3.3 percent at $17.45 in extended trading, while those of Dominion Energy were largely unchanged.

Pipeline companies are reorganizing their business structure after the U.S. Federal Energy Regulatory Commission in March stopped them from claiming an income tax allowance as part of the fees they charge shippers.

“Continued weakness in MLP capital markets combined with the prolonged disruption in Dominion Energy Midstream’s common unit price since the March 15 Federal Energy Regulatory Commission policy revision were key factors that led to this decision,” Dominion Energy Chief Executive Officer Thomas Farrell said.

Reporting by Shanti S Nair and Arunima Banerjee in Bengaluru; Editing by Anil D'Silva

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below