Sept 26 (Reuters) - TransCanada Corp said on Monday its unit, Columbia Pipeline Group, offered to buy Columbia Pipeline Partners LP for about $848 million in cash.
The $15.75 per common unit offer represents a premium of 11.3 percent to Columbia Pipeline Partners’ 30-day average closing price as of Sept. 23, TransCanada said.
A committee of independent directors of Columbia Pipeline Partners’ board will be formed to consider the offer as the general partner of Columbia Pipeline Partners is an indirect unit of Columbia Pipeline Group, TransCanada said.
TransCanada, which completed its $10.3 billion takeover of Columbia Pipeline Group in July, had said it was reviewing strategic alternatives for master limited partnership (MLP) holdings, including Columbia Pipeline Partners LP.
Columbia Pipeline Partners LP is a Delaware MLP with interests in three regulated U.S. natural gas pipelines, as well as storage and related midstream assets.
TransCanada, Canada’s second-largest pipeline company, has retained Morgan Stanley as its financial adviser and Vinson & Elkins as legal adviser. (Reporting by Arathy S Nair in Bengaluru; Editing by Sriraj Kalluvila)