Boston, MA 05/28/2014 (wallstreetpr) – According to the reports, Koch industries Inc. is all set to acquire PetroLogistics LP (NYSE:PDH) in a strategically taken move.
Details About Koch Inc.
Please note that Charles and David Koch own Koch Industries Inc.. The Flint Hills Resources LLC, which is controlled by Koch Industries, has decided to buy PDH in a deal worth $2.1 million. Koch Inc. will pay $12 for each share held by York Capital Management LP, Lindsay Goldberg LLC, and Chairman & Chief Executive Officer of PDH. Company has agreed to pay $14 per share for all the shares held by anyone else.
Why Koch Inc. is Interested:
PetroLogistics LP (NYSE:PDH) uses a liquid gas material named propane to create propylene. PetroLogistics LP has a plant in Houston area. Apart from it, there is no place to produce propylene in the city. It is located at an ideal destination which makes it an ideal deal for Koch Industries Inc.
Flint Hills is quite active in the production of propylene; thus the acquisition of PDH will give it an extra option in the form of the raw material propane. After the acquisition, the company will be able to use propane at its Texas and Michigan branches.
Brad Razook, the CEO of Flint Hills said,” The acquisition of PetroLogistics will help us achieving more efficiency in the production of propylene. The company is well aligned with our business line; thus we will be able to get an edge over our rivals after this acquisition.”
If everything goes fine, then this deal will get closed by the end of the current year. As soon as the news of the acquisition of PetroLogistics LP (NYSE:PDH) came into the market, the share of this company surged by 10% in intraday trading. The market experts consider it a good step taken by the company at the right time. It will impact the earnings of the company in a positive way in coming months.
Koch is All Set to Buy PetroLogistics LP (NYSE:PDH) in a $2.1 Million Deal
