Cheniere Energy Inc (NYSE:LNG) announced that it will acquire its subsidiary Cheniere Energy Partners LP Holdings LLC (NYSE:CQP) in a stock deal.
The oil and gas company valued Cheniere Partners at US$30.93 per share. Cheniere Energy already owns 48.6% of its subsidiary and will acquire all of the publicly held shares that it does not already own.
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Shareholders will receive around US$0.47 per share.
The merger is a tax-free way for the company to reorganize itself and is expected to be completed by the end of the third quarter.
Houston-based Cheniere Energy owns and operates the Sabine Pass LNG terminal located along the Sabine Pass River in Louisiana, right on the Texas border.
Shares of Cheniere Energy were down more than 1% to US$64.32 in Tuesday pre-market trading while Cheniere Energy Partners was down slightly to US$35.82 after Monday’s closing bell.