trending Market Intelligence /marketintelligence/en/news-insights/trending/6pCztmRy0P615A4yEJyp6A2 content esgSubNav
In This List

Teekay Offshore accepts Brookfield's buyout offer, strikes merger deal

Podcast

Next in Tech | Episode 49: Carbon reduction in cloud

Blog

Using ESG Analysis to Support a Sustainable Future

Research

US utility commissioners: Who they are and how they impact regulation

Blog

Q&A: Datacenters: Energy Hogs or Sustainability Helpers?


Teekay Offshore accepts Brookfield's buyout offer, strikes merger deal

A consortium of Brookfield Business Partners LP struck a deal to buy the remaining 26.8% of Teekay Offshore Partners LP's issued and outstanding common units as the midstream services provider accepted a buyout offer from the private equity firm.

Under the deal, Brookfield Business Partners and its affiliates and institutional partners would pay $1.55 in cash per common unit, a 28.1% increase from the May 16 closing price immediately before Brookfield's offer, according to an Oct. 1 news release. The cash consideration represents a premium of 39 cents, or 33.6%, to the Sept. 30 closing price of $1.16 per common unit.

Unit holders may choose to receive newly designated class A common units for each unit held as an alternative to the cash consideration. The new units would be economically equivalent to the units to be held by the Brookfield consortium but would have limited voting rights and transferability.

Prior to deal closing, Brookfield already owned a 73.2% stake in the partnership. The agreement is expected to close in the fourth quarter, subject to customary conditions. It has the unanimous approval of Teekay Offshore's board and conflicts committee.

Evercore Group LLC acted as the financial adviser, while Potter Anderson & Corroon LLP acted as the legal counsel to the conflicts committee.