By Lisa Kerner
Charlotte, N.C., June 1 - Hiland Partners, LP and Hiland Holdings GP, LP signed separate agreements to be acquired and taken private by an affiliate of Harold Hamm.
Under the merger agreements, Hiland Partners' unitholders will receive $7.75 in cash for each common unit they hold and Hiland Holdings' unitholders will receive $2.40 in cash for each common unit they hold.
Hiland Group said conflicts committees determined that the going-private transactions are advisable and fair to the respective unitholders.
The transactions are expected to be completed in the third quarter of 2009 and are conditioned on completion of one another, Hiland said.
Hamm will finance the transactions.
In April 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 to $7.75 from $9.50.
As previously reported, 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.
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.
| Acquirer: | Harold Hamm
|
| Target: | Hiland Partners, LP and Hiland Holdings GP, LP
|
| Announcement date: | June 1
|
| Price per share: | $7.75, $2.40
|
| Expected closing: | Third quarter of 2009
|
| Stock price of target: | Nasdaq: HLND: $5.36 on May 29
|
| Stock price of target: | Nasdaq: HPGP: $1.61 on May 29
|
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