AMGP To Buy Antero Midstream Partners In Simplification Deal

(RTTNews) - Antero Midstream GP LP (AMGP) and Antero Midstream Partners LP (AM) announced Tuesday that they have entered into a definitive agreement for AMGP to acquire all outstanding AM common units, both those held by the public and those held by Antero Resources (AR) in a stock and cash transaction.

In connection with the transaction, AMGP will convert into a corporation and the combined entity will be renamed Antero Midstream Corp.

Under the deal terms, AM public unitholders will be entitled to receive a combination of $3.415 in cash and 1.635 shares of New AM stock per AM unit owned, resulting in aggregate consideration valued at $31.41 per AM unit.

Antero Resources will be entitled to receive a combination of $3.00 in cash and 1.6023 shares of New AM stock for each AM unit owned, resulting in aggregate consideration valued at $30.43 per AM unit.

AM public unitholders will be entitled to elect to receive their merger consideration in all cash, all stock, or a combination of cash and stock, and AR will have the ability to elect to take a larger portion of its merger consideration in cash if the AM public unitholders elect to receive more stock than the mixed election consideration.

The aggregate amount of cash consideration paid to all AM unitholders equals approximately $598 million.