Flint Hills to acquire PetroLogistics in $1.2 billion deal

Flint Hills Resources LLC, a subsidiary of Koch Industries Inc., has entered into a definitive agreement to acquire PetroLogistics and its general partner PetroLogistics GP LLC for $1.2 billion. The deal is expected to close before yearend.

Completion of the transaction is subject to a requirement that PetroLogistics’ facility perform at a certain level of production for a period of 4 days before the closing, and to PetroLogistics’ receipt of a legal opinion regarding certain tax matters.

Under the merger agreement, PetroLogistics retains the right through July 6, under certain conditions, to provide certain information to and enter into discussions and negotiations with any third party that submits an unsolicited qualifying superior acquisition proposal.

Flint Hills would have the opportunity to match such a proposal, but PetroLogistics would be able to terminate the merger agreement with Flint Hills and enter into or recommend a transaction with the third party that submitted the proposal, paying a resulting $57 million termination fee to Flint Hills.

PetroLogistics is a major producer of propylene with operations in the vicinity of the Houston Ship Channel. The company owns and operates the only propane dehydrogenation facility in the US, which has a production capacity of 1.45 billion lbs.

Related Articles

Parsley Energy adds Permian basin acreage

08/26/2014 Parsley Energy Inc., Midland, Tex., has agreed to buy from “multiple sellers” undeveloped and productive acreage in Reagan County, Tex., for a tota...

MARKET WATCH: NYMEX crude oil prices slip pending inventory report

08/26/2014 Crude oil futures prices slipped modestly on the New York market Aug. 25, and analysts said traders expected a weekly government oil report schedul...

CERI: Market access key to Canadian bitumen output

08/25/2014 Outcomes in two areas of critical uncertainty can mean a difference in Canadian bitumen production in 2030 of 1.7-1.8 million b/d, according to a s...

MARKET WATCH: Crude oil futures close week modestly lower

08/25/2014 Crude oil futures prices closed out the week ended Aug. 22 modestly lower after staging a bit of a recovery midweek (OGJ Online, Aug. 22, 2014).

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected