HOUSTON, TEXAS–(Marketwired – Sept. 26, 2016) – Columbia Pipeline Partners LP (NYSE:CPPL) (the Partnership) today announced that it is in receipt of an offer from Columbia Pipeline Group, Inc. (Columbia) to acquire, for cash, all of the 53,843,466 outstanding common units of the Partnership, at a price of US$15.75 per common unit. Columbia is a wholly-owned subsidiary of TransCanada Corporation (TSX:TRP)(NYSE:TRP) (TransCanada).
The offer has been made to the board of directors of the general partner of CPPL (the CPPL Board). As the general partner of CPPL is an indirect wholly-owned subsidiary of Columbia, a committee composed of the independent directors of the CPPL Board will be formed to consider the offer pursuant to its processes. 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 and CPPL boards of directors, the transaction will also require approval by a majority of the CPPL common unitholders. Closing of a potential transaction will also be conditioned upon regulatory approval under the Hart-Scott-Rodino Antitrust Improvements Act, as amended.
This decision to make the offer follows TransCanada’s July 1, 2016 announcement, upon closing its acquisition of Columbia, that TransCanada is reviewing its strategic alternatives for its master limited partnership holdings.
About Columbia Pipeline Partners LP
Columbia Pipeline Partners LP is a Delaware master limited partnership with interests in three regulated U.S. natural gas pipelines which serve markets extending from New York to the Gulf of Mexico, as well as storage and related midstream assets. The Partnership’s general partner became an indirect, wholly-owned subsidiary of TransCanada Corporation (NYSE:TRP) on July 1, 2016, and as a result, the Partnership is effectively managed by TransCanada. For more information about Columbia Pipeline Partners LP, visit the Partnership’s website at www.columbiapipelinepartners.com. Additional information can be found at www.transcanada.com.