Atlas Energy LP (NYSE: ATLS) and Atlas Pipeline Partners LP (NYSE: APL) announced Feb. 20 that its unitholders approved the pending merger transactions with Targa Resources Corp. (NYSE: TRGP) and Targa Resources Partners LP (NYSE: TRP).
In October, Atlas and Targa announced that the companies had agreed to a $7.7 billion merger. As part of the deal, Targa would buy Atlas and its midstream subsidiary and merge ATLS with a subsidiary of TRGP and APL with a subsidiary of TRP.
Targa said the deal combines the companies’ strong Permian positions to create a premier franchise. In the basin, its combined processing capacity will be 1,439 million cubic feet per day (MMcf/d).
About 99.28% of ATLS unitholders voted in favor of the merger with TRGP, and about 52.83% of the units were cast of the total outstanding ATLS common units as of the record date of Jan. 22.
About 98.21% of APL unitholders voted in favor of the merger with TRP, and about 54.84% units were cast of the total outstanding APL common units as of the record date of Jan. 22.
TRC also held a special meeting of its shareholders on Feb. 20, from which about 91.5% of those TRC shares that were voted approved the merger transaction between ATLS and TRC, and about 76.15% of the outstanding TRC shares as of the record date of Jan. 22 were voted.
The receipt of these unitholder and stockholder approvals is a significant step towards the completion of the ATLS merger, the APL merger and the previously announced spin-off of Atlas Energy's non-midstream assets.
The spin-off will occur through the distribution to the ATLS unitholders of one common unit of Atlas Energy Group LLC (AEG), which will hold ATLS' assets and liabilities other than those related to its midstream business, for every two ATLS common units held at the close of business on Feb. 25, the previously announced record date of the distribution.
The distribution of AEG units is expected to be effective after the close of business on Feb. 27 in conjunction with the expected closing of the merger transactions.