Plains All American (PAA) Offers to Buy SemGroup (SEMG) for $24/Share in Cash
Tweet Send to a FriendGet Alerts PAA Hot Sheet
Price: $58.30 -0.34%
Overall Analyst Rating:
BUY (
Down)
Dividend Yield: 4.3%
Revenue Growth %: +15.2%
Overall Analyst Rating:
BUY (
Down)Dividend Yield: 4.3%
Revenue Growth %: +15.2%
Trade PAA Now!
Plains All American (NYSE: PAA) has offered to acquire all the outstanding shares of SemGroup (NYSE: SEMG) for $24 per share in cash.
Chairman and CEO of Plains All American Greg Armstrong said, "We are disappointed that SemGroup’s Board of Directors has refused to engage in constructive discussions with us regarding a possible transaction. Since SemGroup’s emergence from bankruptcy in November 2009, its assets and businesses have consistently and materially under-performed the projections in its Plan of Reorganization. We believe that the attractive and certain value we are proposing to deliver to SemGroup’s stockholders is greater than any value that might be created on a reasonable timetable from any of SemGroup’s other strategic alternatives, including the value attributable to a successful completion of SemGroup’s proposed initial public offering of its newly-formed master limited partnership, Rose Rock Midstream, L.P., and its announced transaction with NGL Energy Partners, the expected value of which are already reflected in SemGroup’s stock price. Notably, our proposal incorporates and offers to SemGroup’s stockholders benefits from cost savings and synergies that we believe PAA is uniquely positioned to realize upon consummation of the proposed transaction."
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
Chairman and CEO of Plains All American Greg Armstrong said, "We are disappointed that SemGroup’s Board of Directors has refused to engage in constructive discussions with us regarding a possible transaction. Since SemGroup’s emergence from bankruptcy in November 2009, its assets and businesses have consistently and materially under-performed the projections in its Plan of Reorganization. We believe that the attractive and certain value we are proposing to deliver to SemGroup’s stockholders is greater than any value that might be created on a reasonable timetable from any of SemGroup’s other strategic alternatives, including the value attributable to a successful completion of SemGroup’s proposed initial public offering of its newly-formed master limited partnership, Rose Rock Midstream, L.P., and its announced transaction with NGL Energy Partners, the expected value of which are already reflected in SemGroup’s stock price. Notably, our proposal incorporates and offers to SemGroup’s stockholders benefits from cost savings and synergies that we believe PAA is uniquely positioned to realize upon consummation of the proposed transaction."
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- UPDATE: Bausch & Lomb near deal to sell to Valeant Pharmaceuticals (VRX) - WSJ
- Tween/Teen Retail Stocks on Watch After rue21 (RUE) Acquired at 23% Premium
- rue21 (RUE) Will be Acquired by Apax Partners for $42/Share
Create E-mail Alert Related Categories
Mergers and AcquisitionsRelated Entities
Bankruptcy
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
