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El Paso Pipeline Partners LP to purchase additional stake in SNG for USD587m.

M2 EQUITYBITES-March 8, 2011-El Paso Pipeline Partners LP to purchase additional stake in SNG for USD587m(C)2011 M2 COMMUNICATIONS http://www.m2.com

Natural gas transportation company El Paso Pipeline Partners LP (NYSE:EPB) revealed on Monday that it plans to acquire an additional 22% holding in Southern Natural Gas Company (SNG) for a purchase price of USD587m.

The company has executed the purchase agreement with El Paso Corporation (NYSE:EP).

Upon completion of the transaction, El Paso Pipeline Partners will raise its interest in SNG to 82%.

Under the agreement, El Paso Corporation has granted El Paso Pipeline Partners a 45-day option to purchase up to an additional 3% interest in SNG at a price of approximately USD26.7m per 1% interest purchased.

This transaction is anticipated to close by the end of March 2011 and the terms were unanimously approved by the board of directors of the general partner, El Paso Pipeline GP Company LLC.

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Publication:M2 EquityBites (EQB)
Date:Mar 8, 2011
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