SemGroup, KKR to create C$1.75 bln Canadian midstream platform
SemGroup Corp 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 C$1.15 billion, in exchange for C$615 million and a 51 percent stake in the platform. KKR will commit C$515 million for a 49 percent stake and C$300 million to acquire perpetual preferred equity. As part of the deal, the partners have agreed to acquire Meritage Midstream ULC for C$600 million from U.S. energy private equity firm Riverstone Holdings.With the deal’s close in Q1 2019, Calgary-based SemCAMS Midstream will have assets of C$1.75 billion and own natural gas processing capacity in Alberta’s Montney region.
