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Energy Transfer Partners, L.P. Message Board

  • arbtrdr arbtrdr Dec 17, 2012 1:49 PM Flag

    Sale for $1B of "Holdco" assets

    Anyone find anything to say what the end result will be of this sale. Is the book value of these assets such that it will be accretive or not? Since the sale is at least 9 months away, guess we have time to find out. Called IR early this am and no response yet.


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    • The book value for the gas distribution assets is almost certainly below the sales prices of roughly 1B$. I assume this, because the distribution business had ~60M$ in EBIT or roughtly 40M$ posttax.. Typically and utility should generate a roughly 10% ROE posttax, even if we assume 8%, that would be a book value of 500M$, which would mean that LG paid at leat 2x book.

      I think LG paid full value for this asset, which should be good news for ETP and ETE unitholders.

      • 1 Reply to clownbucks
      • Went back to SUG 10K/Q posts. The book value is somewhere between $300-400M (probably closer to $300M) according to the reports. ETP stated "we will do everything possible to minimize taxes on our unitholders." This obviously means they will find a replacement property - should not be hard as anything in the NG gathering business would work.

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