Plains All American Offers To Buy Rest Of PAA Natural Gas Storage

(RTTNews) - Plains All American Pipeline, L.P. (PAA) said Tuesday that it has submitted a proposal to the independent directors of the board of directors of the general partner of PAA Natural Gas Storage, L.P. (PNG) to acquire all of PAA Natural Gas's outstanding publicly-held common units through a unit-for-unit exchange.

PAA is proposing consideration of 0.435 common units of PAA for each issued and outstanding publicly-held PNG common unit in a deal that would be structured as a merger of PNG with a wholly-owned subsidiary of PAA. The proposed consideration represents a value per PNG common unit of $22.74 based on the trailing 10-day average closing price of PAA's common units through August 26.

The proposed deal is subject to the negotiation and execution of a definitive agreement and approval of such definitive agreement and the deals contemplated thereunder by PAA's board of directors, a conflicts committee to be established by the board of directors of PNG and the unitholders of PNG.

PAA owns about 28.2 million common units of PNG, which represents about 46% of PNG's issued and outstanding common units. PAA also owns PNG's general partner, as well as all of PNG's incentive distribution rights and all of its Series A subordinated units and Series B subordinated units.