Deal Description: On March 29, 2016, Tallgrass Development, LP (“Tallgrass”) announced that its wholly owned subsidiary, Rockies Express Holdings, LLC, has signed a purchase agreement with a unit of Sempra U.S. Gas and Power (“Sempra”) to acquire Sempra's 25 percent membership interest in Rockies Express Pipeline LLC (“REX”) for cash consideration of $440 million, subject to adjustment under the purchase agreement.
The transaction has been approved by the applicable boards of both Tallgrass and Sempra and is subject to closing conditions. In addition, the other member of REX, which owns a 25 percent membership interest, has a right to purchase its proportionate share of Sempra's 25 percent membership interest being sold to Tallgrass, which could reduce the membership interest acquired by Tallgrass from Sempra to 16 2/3 percent.
Baker Botts is representing Tallgrass Development, LP in the transaction.
For more information, please see Tallgrass’ news release by clicking here.
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