Targa Resources Partner has signed a deal to take over Atlas Pipeline Partners. This involves an exchange in one’s product for an equal amount of units.
The deal is closed to 0.5846 NGLS units to every APL unit. Targa will also add $1.26 to each of the materials present in Atlas Pipelines.
This simply means that there will be a total of $38.66 for every APL unit. Looking at the stock sheets, this is already 15 percent of their total performance in the market.
There have been several inclusions in the deal. After all the units are calculated, Atlas will sit at 34 percent holdings while Targa will have it at 66. This is already a fair deal considering the amount of work and the numbers that Targa Resources has put on to their portfolio.
There will still be matters to be discussed with the partners of Atlas Pipeline – the Atlas Energy LP. They will have to finalize the first part of the deal before they will be able to work with the complete percentage splits. Until then, they will have to continue to work with their own products.
The additional dollars are not the only thing that will be given by Targa to equal the value of the units in Atlas. There will also be incentives that will solely be for the distribution rights. They have set it for four years once the deal is settled.
They have allotted $37.5 million, $25 million, $10 million, and $5 million for the remaining four years that they will have to work with the distribution set by Atlas.
A lot of bylaws, especially money, is involved in this huge transaction. However, it does not end here. There will still be plots for the investors of the company.