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Blackstone is weighing a sale of its interest in Cheniere Energy Partners: Bloomberg
Posted on Tuesday, 23 July 2019 08:14
Private equity group Blackstone is considering a disposal of its majority stake in Cheniere Energy’s limited partnership, people familiar with the matter told Bloomberg.

These insiders added that an unnamed advisor has been appointed to work on an auction with potential suitors likely to include infrastructure, pension and sovereign wealth funds.

It has been seven years since Blackstone acquired an initial 33.3 per cent stake in Cheniere Energy Partners for USD 1.50 billion and the investor is now shopping the holding after receiving unsolicited interest from possible buyers, Bloomberg’s sources observed.

Some of these people noted that the buyout firm is under no pressure and may decide to hold onto the company.

Blackstone, as of 20th February 2019, owned 203.40 million common shares, representing roughly 58.3 per cent of Cheniere Energy Partners’ total outstanding stock, which at the target’s close of USD 43.19 on 19th July 2019, is worth about USD 8.78 billion.

The business is a Delaware limited partnership formed by Cheniere Energy and through its wholly-owned subsidiaries owns and operates the Sabine Pass receiving terminal and the Creole Trail Pipeline located in Louisiana.

Cheniere Energy Partners is developing, constructing and operating a liquefaction project adjacent to the existing regasification facilities for up to six trains, with expected aggregate nominal production capacity of about 27.00 metric tonners per annum of liquefied natural gas.

Shares in the company closed up 1.7 per cent to USD 43.92 following the Bloomberg report yesterday, giving the firm a market capitalisation of USD 21.26 billion.

In the three months ended 31st March 2019, Cheniere Energy Partners recorded revenues of USD 1.75 billion, up 10.1 per cent from USD 1.59 billion in the corresponding period of 2018.

Adjusted earnings before interest, taxes, depreciation and amortisation declined 7.9 per cent to USD 607.00 million over the same timeframe from USD 659.00 million in Q1 2018.

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