Tesoro To Buy Remaining Stake In QEP Midstream

(RTTNews) - Tesoro Logistics LP (TLLP) on Monday said it has agreed to buy the remaining stake in QEP Midstream Partners LP (QEPM) in a unit-for-unit exchange.

Under the terms of the deal, QEPM public unitholders will receive 0.3088 TLLP common units for each QEPM common unit held.

The consideration is valued at $17.09 per QEPM common unit based on Monday's TLLP closing price of $55.34 and represents an 8.5% premium to TLLP's original proposal of 0.2846 announced on December 2, 2014. The price is also an 8.6% premium to Monday's QEPM closing price of $15.74.

The deal, expected to close in 2015, has been approved by the boards of both companies.

TLLP currently owns a near 55.8% limited partner interest in QEPM, and 100% of the limited liability company interests of QEPM GP.

"We are pleased to announce the execution of this agreement for the merger of QEP Midstream Partners into Tesoro Logistics," said Greg Goff, CEO of TLLP's general partner. "The merger will allow for a more simplified business structure, which is consistent with our integrated logistics strategy."