Robbins LLP: Acquisition of Cheniere Energy Partners LP Holdings, LLC (CQH) by Cheniere Energy, Inc. (LNG) May Not Be in Shareholders’ Best Interests
Robbins LLP is investigating the proposed acquisition of Cheniere Energy Partners LP Holdings, LLC (“Cheniere Partners Holdings”) (AMEX: CQH) by Cheniere Energy, Inc. (“Cheniere”) (AMEX: LNG). On September 30, 2016, the two companies announced the signing of a definitive merger agreement pursuant to which Cheniere will acquire Cheniere Partners Holdings. Under the terms of the agreement, Cheniere Partners Holdings shareholders will receive 0.5049 shares of Cheniere common stock for each share of Cheniere Partners Holdings common stock, the value of which is equivalent to $21.90 based on Chenier’s closing price on September 29, 2016.
Is the Proposed Acquisition Best for Cheniere Partners Holdings and Its Shareholders?
Robbins LLP’s investigation focuses on whether the board of directors at Cheniere Partners Holdings is undertaking a fair process to obtain maximum value and adequately compensate its shareholders.
As an initial matter, the $21.90 merger consideration represents a premium of only 3.00% based on Cheniere Partners Holdings’ closing price on September 29, 2016. This premium is significantly below the average one day premium of nearly 40.29% for comparable transactions within the past five years. Further, the $21.90 merger consideration is significantly below the target price of eight individual analysts at separate firms, including the target price of $30.00 set by an analyst at Credit Suisse on August 5, 2015; the target price of $30.00 set by an analyst at US Capital Advisors on September 8, 2016; and the target price of $29.00 set by an analyst at Wolfe Research on June 21, 2016. In the last three years, Cheniere Partners Holdings traded as high as $27.15 on May 30, 2014, and most recently traded above the merger consideration – at $23.61 – on August 31, 2015.
Cheniere Partners Holdings shareholders have the option to file a class action lawsuit to ensure the board of directors obtains the best possible price for shareholders and the disclosure of material information.
Cheniere Partners Holdings shareholders interested in information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.