Tallgrass Energy LP shareholder Tortoise Capital Advisors LLC advised the energy midstream company's independent board members to seek a higher buyout offer from Blackstone Group Inc.'s infrastructure arm, Bloomberg News reported Sept. 21, citing a person familiar with the matter.
The investment manager Tortoise, which holds a 9.5% stake in Tallgrass, is asking for a bid that would represent a slight discount to what Blackstone Infrastructure Partners paid in its $3.2 billion acquisition of a 44% interest in the company in March, the unnamed source told Bloomberg News.
Blackstone's offer to take the company private by acquiring its outstanding class A shares at a price of $19.50 per share represents a 36% premium, but it is 40% smaller than what Blackstone paid for in March, the report said.
In addition, under agreements struck alongside the March deal, senior Tallgrass executives would reportedly be receiving $26.25 per share if Blackstone chooses to take the rest of the company private, according to Bloomberg News.
Blackstone and Tortoise representatives declined to comment, while Tallgrass did not immediately respond to a request for comment, Bloomberg said.
Tallgrass provides midstream energy services across 11 U.S. states.
