SemGroup, KKR to create $1.75 bln Canadian midstream platform
SemGroup Corp (NYSE: SEMG) and U.S. private equity firm KKR have agreed to partner in the creation of a Canadian midstream infrastructure platform, SemCAMS Midstream ULC. SemGroup will contribute the shares and assets of its Canadian unit, valued at $1.15 billion, in exchange for $615 million and a 51 percent stake in the platform. KKR will commit $515 million for a 49 percent stake and $300 million to acquire preferred equity. As part of the deal, the partners have agreed to acquire Meritage Midstream ULC from Riverstone Holdings for $600 million. With the deal's close in Q1 2019, Calgary-based SemCAMS Midstream will have assets of $1.75 billion and own natural gas processing capacity in Alberta's Montney region.
10 January 2019•8 mins read
