Valero Energy Approves Plan To Buy Gas Partnership
SAN ANTONIO, Texas (AP) _ Valero Energy Corp. said Monday its board of directors has approved a proposed $106.7 million acquisition of the 52 percent in Valero Natural Gas Partners L.P. that it doesn’t already own.
Valero Energy offered $11 for each of the 9.7 million publicly traded Valero Natural Gas common units, and plans to issue preferred stock to raise cash for the offering.
Valero Natural Gas has formed a committee of outside directors to consider the offer. A majority of the partnership’s common shares would have to approve the move.
On Friday, two holders of common units filed lawsuits in Delaware asking the court to block the merger or have Valero Energy increase the price.
Valero Enery refines high-sulfur atmospheric residual oil into premium products, such as unleaded gasoline, at its refinery in Corpus Christi, Texas. Aside from its natural gas pipeline and gathering business, Valero Natural Gas supplies gasoline additives to Valero Energy.