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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Brian Sullivan who wrote (55518)	6/22/2015 12:53:02 PM
From: Brian Sullivan	Respond to of 78714

Williams Companies’ acquisition of Williams Partners Williams Companies (WMB) is the parent company of Williams Partners (WPZ). It’s set to acquire all of Williams Partners’ public outstanding units. We’ll explain the deal’s details below. Key points of the deal Williams offers 1.115 shares for one Williams Partners’ share Williams will issue 275.4 million shares—about 27% of the total shares of the combined company The deal’s total value stands at $13.8 billion—it’s $55.80 per share of Williams Partners. The deal would reduce the cost of capital and free up funds for acquisitions. The lower capital cost would also drive a 10%–15% dividend growth rate through 2020. The combined companies expect to pay a 3Q15 dividend of $0.64 per share, or $2.56 annualized, and $2.85 annualized for 2016, with a follow-on annual dividend growth of ~10%–15% through 2020. The merger is expected to close in the fall of 2015 after regulatory filings and a successful Williams shareholder vote on transaction. An enhanced growth profile and a lack of incentive distribution rights should significantly lower Williams’ cost of capital. finance.yahoo.com