Williams Partners to sell stake in petchem plant for $2.1 B
(Reuters) -- Pipeline operator Williams Partners LP said it would sell its stake in a unit that owns 88.46% of an olefins plant in Louisiana to Nova Chemicals for $2.1 B in cash.
Williams Partners also said its units would enter into long-term supply and transportation agreements with Nova after the deal closes, expected by this summer.
The asset sale announced on Monday is part of Williams' strategy to reduce its reliance on commodity margins and focus on natural gas.
Williams Cos Inc, which controls and is the majority shareholder of Williams Partners, has also said it is focused on growing natural gas volumes.
Williams Partners said on Monday it expects to generate 97% of its fee-based revenue from natural gas sales after the close of the asset sale.
The company said it planned to use the deal proceeds to pay off $850 MM of its debt, and fund a portion of its capital and investment expenses.
Calgary-based Nova Chemical is owned by International Petroleum Investment Company (IPIC), formed by the Abu Dhabi government to invest in the energy and related sectors.
Morgan Stanley and Centerview Partners LLC were financial advisers to Williams Partners, with Gibson, Dunn & Crutcher LLP and Kean Miller LLP providing legal counsel.
Reporting by Ahmed Farhatha in Bengaluru; Editing by Sriraj Kalluvila
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