Cheniere Energy Partners, L.P. (NYSE MKT: CQP) is a Delaware limited partnership formed by Cheniere Energy, Inc. Through wholly owned subsidiaries, it owns and operates the Sabine Pass LNG receiving terminal and the Creole Trail Pipeline located in western Cameron Parish, Louisiana on the Sabine Pass Channel.
A proposed acquisition of Cheniere Energy Partners LP Holdings, LLC (NYSE MKT: CQH) by Cheniere Energy, Inc. (NYSE MKT: LNG) was announced in a press release on September 30, 2016 with 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 Cheniere’s closing price on September 29, 2016.
Is Cheniere Partners Holdings undertaking a fair process to obtain maximum value and adequately compensate its shareholders? The $21.90 merger consideration is significantly below the target price of several individual analysts at separate firms according to Market Watch.
According to the Wall Street Journal, last month, Cheniere posted a second-quarter loss as its ramp-up in production of liquefied natural gas faces a world-wide glut that is depressing prices. Surging natural-gas supplies in North America and slowing demand from traditional buyers in Asia have pushed down LNG spot prices and made it more difficult for suppliers to sign fixed-price contracts needed to secure financing for export projects.
MLPs are extremely complex and risky. They are only suitable for wealthy, sophisticated retail investors or institutional investors.
Brokerage firms that sell such products are required to perform adequate due diligence on the investments to ensure a reasonable likelihood of success, and to evaluate whether the investments are suitable in light of the client’s age, net worth, investment experience, and investment objectives. Firms that fail to perform adequate due diligence, or that make unsuitable recommendations, can be held responsible for losses in a FINRA arbitration claim.
If you suffered losses investing in Cheniere Energy Partners and would like a free consultation with a securities attorney, please call The White Law Group at 888-637-5510.
The White Law Group is a national securities arbitration, securities fraud, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.
For more information on The White Law Group, visit http://whitesecuritieslaw.com.
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