M&A Updates: Will The Third ArcLight's Offer For American Midstream Be The Last One?

Spread: 2%. Closing: Q2 2019

ArcLight, a private equity company that invests mainly into energy infrastructure assets has been targeting their gas & oil MLP American Midstream since last year's autumn. The initial offer came in September and was priced at $6.1/share; however, on the 3rd of January got amended to $4.5/share. As ArcLight holds 51% of the company, it seems that only the approval of the independent committee is needed to proceed, however, it wasn't given for both of the already mentioned offers (the last deadline has expired on the 31st of Jan.). Now, recently, a new proposal of $5.25/share has come up, which for us offers 2% upside for a deal, that if approved should close very quickly. On the other hand, if that does not happen, it is quite possible that ArcLight may raise the offer once again.

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