Nov 16 (Reuters) - Pipeline operator Energy Transfer Partners LP said it would sell its 68.42 percent stake in Sunoco LLC, which distributes motor fuel, to convenience store operator Sunoco LP for about $2.23 billion.
The transaction, the latest among such asset sales between the two, will complete Sunoco LP's transformation into a wholesale fuel and retail marketing company, the companies said in a statement on Monday.
Sunoco LP will pay Energy Transfer Partners about $2.2 billion in cash and the rest by issuing about 5.7 million common units.
Both Sunoco LP and Energy Transfer Partners are master-limited partnerships formed by pipeline operator Energy Transfer Equity LP.
Energy Transfer Partners will remain the largest unitholder of Sunoco LP with a stake of about 46 percent in the company, the companies said.
Sunoco LP said it plans to raise cash for the deal through a bank loan and by selling shares in a private placement for $31 per share.
Sunoco LP said it expects it will not need to raise any additional equity financing next year after the deal closes in February.
Energy Transfer Partners sold Susser Holdings to Sunoco LP for about $1.94 billion in cash and stock in July, months after transferring some convenience store assets to Sunoco in September last year in a deal valued at about $768 million. (Reporting by Amrutha Gayathri in Bengaluru; Editing by Saumyadeb Chakrabarty and Savio D'Souza)