Cheniere Energy, Inc. (NYSEMKT:LNG) announced that it has submitted a proposal to the board of directors ofCheniere Energy Partners LP Holdings, LLC (“Cheniere Partners Holdings”) (NYSE MKT: CQH) to acquire the publicly held shares of Cheniere Partners Holdings not already owned by Cheniere in a stock for stock exchange. Subject to negotiation and execution of a definitive agreement, Cheniere is proposing consideration of 0.5049 Cheniere shares for each outstanding publicly-held share of Cheniere Partners Holdings as part of a transaction that would be structured as a merger of Cheniere Partners Holdings with a wholly-owned subsidiary of Cheniere. The proposed consideration represents a value of$21.90 per common share of Cheniere Partners Holdings, or a premium of approximately 3.0% over the closing price of Cheniere Partners Holdings’ shares, based on the closing prices of Cheniere Partners Holdings’ shares and of Cheniere’s shares as of September 29, 2016, or a premium of approximately 7.0% over the 30-trading day average CQH / LNG exchange ratio as of September 29, 2016.
“We believe the proposed transaction is attractive to investors in Cheniere Partners Holdings who, as new LNG shareholders, would have the opportunity to participate in the future success of the entire Cheniere complex,” said Jack A. Fusco, President and Chief Executive Officer of Cheniere. “In addition, shareholders of Cheniere Partners Holdingswould receive an attractive premium over its recent trading levels and a significant increase in the trading liquidity of their investment.” (Original Source)
Shares of Cheniere Energy closed yesterday at $43.37, down $0.83 or -1.88%. LNG has a 1-year high of $54.95 and a 1-year low of $22.80. The stock’s 50-day moving average is $43.86 and its 200-day moving average is $38.27.
On the ratings front, LNG stock has been the subject of a number of recent research reports. In a report issued on July 1, J.P. Morgan analyst Jeremy Tonet maintained a Buy rating on LNG, with a price target of $54, which implies an upside of 24.5% from current levels. Separately, on June 22, Wolfe Research’s Steve Fleishman initiated coverage with a Buy rating on the stock and has a price target of $47.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Jeremy Tonet and Steve Fleishman have a total average return of 4.1% and -4.1% respectively. Tonet has a success rate of 55% and is ranked #889 out of 4200 analysts, while Fleishman has a success rate of 40% and is ranked #3321.
Cheniere Energy, Inc. is engaged in the development, construction and operation of LNG terminals and marketing of LNG and natural gas. It operates through the LNG terminal and LNG and natural gas marketing segments. The LNG terminal segment comprises of the operational Sabine Pass LNG terminal in western Cameron Parish, Louisiana on the Sabine Pass Channel and the following two other LNG terminals that are in various stages of development. The LNG and natural gas marketing segment consists of Cheniere Marketing, LLC (Cheniere Marketing) marketing LNG and natural gas on its own behalf and assisting Cheniere Investments in an effort to utilize the regasification capacity held at the Sabine Pass LNG terminal.