Hiland Partners, LP and Hiland Holdings GP (HLND) Announce Receipt of Amended 'Going Private' Proposals Reducing Proposed Merger Consideration
The Hiland companies, Hiland Partners, LP (Nasdaq: HLND) and Hiland Holdings GP, LP (Nasdaq: HPGP), today announced that the conflicts committee of the board of directors of the general partner of each of the Hiland companies has received a letter from Harold Hamm amending his January 15, 2009 proposal to acquire all of the outstanding common units of each of the Hiland companies that are not owned by Mr. Hamm, his affiliates or Hamm family trusts.
Under the revised terms proposed by Mr. Hamm, Hiland Partners unitholders would receive $7.75 in cash per common unit, reduced from $9.50 in cash per common unit under the January 15 proposal. Holdings unitholders would receive $2.40 in cash per common unit, reduced from $3.20 in cash per common unit under the January 15 proposal. In his letter to each conflicts committee reducing the proposed merger consideration, Mr. Hamm cited the adverse effect that continued declines in natural gas prices and drilling activity along Hiland Partners' systems have had on the Hiland companies' current and long-term projected throughput volumes, midstream segment margins and cash flows since his original proposals were delivered on January 15. Other than the reduced merger consideration discussed in this paragraph, Mr. Hamm has not modified the original proposals. A copy of each letter is attached to this press release.
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Under the revised terms proposed by Mr. Hamm, Hiland Partners unitholders would receive $7.75 in cash per common unit, reduced from $9.50 in cash per common unit under the January 15 proposal. Holdings unitholders would receive $2.40 in cash per common unit, reduced from $3.20 in cash per common unit under the January 15 proposal. In his letter to each conflicts committee reducing the proposed merger consideration, Mr. Hamm cited the adverse effect that continued declines in natural gas prices and drilling activity along Hiland Partners' systems have had on the Hiland companies' current and long-term projected throughput volumes, midstream segment margins and cash flows since his original proposals were delivered on January 15. Other than the reduced merger consideration discussed in this paragraph, Mr. Hamm has not modified the original proposals. A copy of each letter is attached to this press release.
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