HF Sinclair Corp., Dallas, has agreed to acquire all outstanding common units of Holly Energy Partners LP (HEP) not owned by HF Sinclair or its affiliates.
The transportation and storage master limited partnership is currently 47%-owned by HF Sinclair (OGJ Online, Aug. 8, 2022; Aug. 4, 2021).
Upon closing of the proposed cash and stock deal—par value $0.01 per share of HF Sinclair—HEP will be a wholly owned subsidiary of HF Sinclair and no longer a publicly traded partnership.
The deal is expected to simplify HF Sinclair’s corporate structure, reduce costs, and further integrate the HF Sinclair portfolio, said chief executive officer and president, Tim Go, in a release Aug. 16.
The agreement provides for consideration of both stock and cash in which each holder of Common Units would receive a combination of 0.315 shares of common stock and $4.00 in cash, without interest, for each publicly held common unit. The proposed deal represents an approximate 2% premium to the closing price of HEP’s common units as of Aug. 15, 2023.
The deal is expected to close in this year’s fourth quarter, subject to the approval of HF Sinclair stockholders and HEP unitholders and the satisfaction of certain customary closing conditions.
