Tesoro Logistics is buying up the remaining portion of QEP Midstream Partners. The two partnerships jointly announced the signing of a definitive merger agreement whereby TLLP will acquire QEPM in a unit-for-unit exchange. Under the terms, QEPM public unitholders will receive 0.3088 TLLP common units for each QEPM Common Unit held. This consideration is valued at $17.09 per QEPM common unit based on the TLLP closing price at the time of the announcement of $55.34 and represents an 8.5 percent premium to TLLP’s original proposal of 0.2846 announced on 2 December 2014 and an 8.6 percent premium to today’s QEPM closing price of $15.74.
The transaction has been approved by the boards of directors at both companies as well as the Conflicts Committee of the Board of Directors of QEP Midstream Partners GP, LLC, the general partner of QEPM.