Hiland companies' chairman reduces offer price in going-private deal

By Lisa Kerner

Charlotte, N.C., April 21 - Harold Hamm amended his Jan. 15 proposal to acquire all of the outstanding common units that he or his affiliates do not own of Hiland Partners, LP and Hiland Holdings GP, LP.

Hamm's amended proposal reduces the cash paid per Hiland Partners common unit to $7.75 from $9.50.

The amended proposal reduces the amount Hiland Holdings unitholders would receive to $2.40 in cash per common unit from $3.20, a Hiland companies news release said.

According to Hamm, the price reductions were due to "continued declines in natural gas prices and drilling activity" along the Hiland companies' systems.

Hamm is the chairman of both Hiland Partners GP, LLC, the general partner of Hiland Partners, LP, and Hiland Partners GP Holdings, LLC, the general partner of Hiland Holdings GP, LP.

The Hamm family trusts, Hamm and his affiliates either individually or together beneficially own 100% of Hiland Partners GP Holdings, LLC and approximately 61% of the outstanding common units of Hiland Holdings GP, LP.

Hiland Holdings GP, LP owns 100% of Hiland Partners GP, LLC and approximately 37% of the outstanding common units of Hiland Partners, LP, the release said.

The board of directors and the conflicts committee of each of Hiland Partners GP, LLC and Hiland Partners GP Holdings, LLC have not made any decisions regarding the revised proposals.

Enid, Okla.-based Hiland provides natural gas gathering and processing services and air compression and water injection services for oil and gas secondary recovery operations.

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