UPDATE 1-Williams Cos, Williams Partners to sell Canadian operations
Aug 8 (Reuters) - Pipeline company Williams Cos Inc and its master limited partnership agreed on Monday to sell their Canadian natural gas liquids midstream businesses to Inter Pipeline Ltd for total cash proceeds of C$1.35 billion ($1.03 billion).
This is the first major deal by Williams Cos since Energy Transfer Equity walked away from its more than $20 billion takeover of the company in June.
Williams Partners LP will get a net consideration of about $817 million, while Williams Cos will get about $209 million after a waiver of $150 million of incentive distribution rights in the quarter.
Both companies said they planned to use the proceeds to reduce borrowings on credit facilities.
The assets include two liquids extraction plants located near Fort McMurray, Alberta; a fractionator near Redwater, Alberta and a pipeline system that connects these facilities.
Fort McMurray in northern Alberta, the heart of Canada's oil sands region, was affected by an uncontrollable wildfire in May.
The Canadian unit had attracted at least seven bidders, including Enbridge Inc, and pension funds, such as Canada Pension Plan Investment Board and Ontario Teachers' Pension Plan, Reuters reported last month, citing sources.
Inter Pipeline said it would also assume responsibility for the potential construction of a C$1.85 billion propane dehydrogenation facility in Alberta. Continued...