M&As this week: Ascent Resources, Sinopec, Magellan Petroleum, MarEn

Ascent Resources has agreed to acquire 100% stake in Trameta, which owns access to a section of pipeline in Slovenia.

The deal implies a purchase consideration of up to $0.87m, which will be funded by Ascent Resources through the issuance of up to 75 million common shares.

Scheduled for closure by 15 October, the acquisition will provide Ascent Resources a direct route to trade its gas without banking on further Slovenian permitting.

China Petroleum & Chemical Corporation (Sinopec) has unveiled its plans to dispose a 50% stake in Sinopec Sichuan to East China Gas Pipeline.

Sinopec Sichuan owns and operates a 2,200km-long gas pipeline with a design capacity of approximately 12 billion cubic metres (bcm) of natural gas a year.

Sinopec will own a 50% stake in Sinopec Sichuan upon the completion of acquisition. The divestment will enable Sinopec to provide financing to support the Sichuan-East China pipeline project.

Magellan Petroleum Corporation has agreed to acquire Tellurian Investments through a reverse takeover transaction.

The $139.08m deal will involve the issue of approximately 122 million Magellan shares to shareholders of Tellurian, constituting approximately 95% of Magellan’s outstanding common stock.

Petrie Partners Securities is the financial adviser to Magellan on the deal, while Gray Reed & McGraw, P.C. and Davis, Graham & Stubbs LLP are legal advisers to Tellurian and Magellan respectively.

Scheduled for completion in the fourth quarter of this year, the acquisition will enable Magellan to embark into the LNG business.

MarEn Bakken Company (MarEn), a joint venture of Enbridge Energy Partners and Marathon Petroleum Corporation, has signed a pact with Energy Transfer Partners (ETP) and Sunoco Logistics Partners (SLP) to acquire a 49% stake in Bakken Holdings Company.

The deal will involve a cash consideration of $2bn, which includes $1.2bn to be paid to ETP and $800m to SLP.

Upon completion of the deal, the Bakken Pipeline Project will be owned by Bakken Holdings (38.25%, operator), MarEn (36.75%) and Phillips 66 (25%).

Credit Suisse Securities (USA) is the financial adviser, while Porter Hedges is the legal adviser to ETP and Sunoco on the transaction, which is anticipated to be completed in the third quarter of this year.