Williams completes $1.1 billion sale, receives $510 million in cash from buyer
Petroleum News Houston staff
Williams has completed the sale of its 54.6 percent ownership interest in Tulsa-based Williams Energy Partners L.P. to Delaware Group in a $1.1 billion transaction, Williams said June 17.
The buyer, a limited partnership recently formed by the private equity firms Madison Dearborn Partners and Carlyle/Riverstone Global Energy and Power Fund II, paid about $510 million in cash at closing, Williams said.
In addition, the transaction has the effect of removing $570 million of the partnership’s debt from Williams’ consolidated balance sheet.
Williams said it expects to realize a pre-tax gain of at least $270-to $285 million on the deal, which the company said will be reported as a discontinued operation in its 2003 second quarter financial results.
Williams, which has been selling assets to help pay down its considerable debt, said the company has now received about $2.75 billion in cash from asset sales that have been closed or announced.
“Each sale, along with our recent financing, are precise steps toward a stronger foundation for a redefined Williams,” said Steve Malcolm, Williams’ chairman, president and chief executive officer.
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