Williams Cos. Inc. registered $10.49 billion worth of common shares in connection to its buyout of master limited partnership Williams Partners LP.
The value is based on the average of high and low prices for Williams Partners common units, equivalent to $40.99 per share as of May 23, according to a May 29 SEC filing.
Under the merger deal, Williams Partners would become a wholly owned subsidiary of Williams. At the effective time of the merger, Williams Partners common units will be canceled and converted into 1.494 Williams common shares. If the merger closes on or after a particular date, the exchange ratio would be 1.513 Williams shares for one Williams Partners unit.
Williams stockholders during a special meeting would vote on proposals for the merger, which includes an increase of Williams' shares to a total of 1.5 billion shares, from 990 million shares, and the issuance of Williams shares in connection to the merger agreement.
The May 17 roll-up announcement followed the Federal Energy Regulatory Commission's decision to disallow oil and gas pipeline MLPs from recovering an income tax allowance in their cost-of-service rates.
