AltaGas Idemitsu Joint Venture LP received notice from Sam Holdings Ltd. that it is exercising a put option requiring the joint venture to acquire Sam Holdings' approximately one-third interest in Petrogas Energy Corp.
Petrogas provides oil and NGL marketing and supply services in North America and its assets include the only operating liquefied petroleum gas export terminal on the U.S. Pacific coast. AltaGas Idemitsu, which owns the remaining two-thirds interest in Petrogas, said it is evaluating the put notice.
Under Petrogas' unanimous shareholders agreement, if Sam Holdings exercises its put option after Oct. 1, 2019, AltaGas Idemitsu is required to buy Sam Holdings' interest in Petrogas at the fair market value, according to a Jan. 2 news release.
AltaGas plans to fund its part of the requirement with cash flow, noncore asset sales and debt.
AltaGas Idemitsu is a 50/50 joint venture of AltaGas Ltd. and Japan's Idemitsu Kosan Co. Ltd. Altagas is an energy infrastructure company focused on regulated utilities, midstream and power, while Idemitsu Kosan manufactures and sells fuel oils and lubricant oils in Japan and internationally.