Inergy LP (
) is now up 8.8% at $23.95, touching a new 52-week high of $24.64.
The company and Inergy Midstream LP, along with Crestwood Midstream
) Crestwood Holdings have agreed to create a fully integrated
midstream partnership with a total enterprise value of
approximately $7 billion.
The combination will be implemented through a series of
transactions, which will result in Crestwood Holdings acquiring the
general partner, and thus control, of Inergy L.P
The terms of the agreements are as follows: Crestwood Holdings
will acquire the general partner of Inergy L.P. and will contribute
the general partner and incentive distribution rights of Crestwood
Midstream to Inergy L.P. in exchange for Inergy L.P. common units.
Separately, Crestwood Midstream will be merged with a subsidiary of
Inergy Midstream. In the merger, Crestwood Midstream unitholders
will receive 1.070 common units of Inergy Midstream for each unit
of Crestwood Midstream they own, representing a 5% premium to the
20-day volume weighted average price of Crestwood Midstream's
Additionally, all Crestwood Midstream public unitholders other
than Crestwood Holdings will receive a one-time cash payment at
closing of the merger of approximately $35 million in the
aggregate, or $1.03 per unit, $25 million of which will be payable
by Inergy Midstream and approximately $10 million of which will be
payable by Crestwood Holdings. Inergy Midstream and Inergy L.P.
will continue to be listed on the NYSE under the ticker symbols
NRGM and NRGY, respectively.
CMLP is up 4.4% at near $24.90, off a day high $25.55 with a
52-week range of $19.90 - $29.12.
Copyright (C) 2014 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.