Morgan Stanley to sell Southern Star Central Corporation

Morgan Stanley Infrastructure Partners has pans to sell Southern Star Central Corporation, a Kentucky-based natural gas transmission system operator.

Southern Star is a transporter of natural gas to America’s heartland, with about 6,000 miles of natural gas transmission pipeline in the Midwest and Mid-Continent regions of the United States. Their pipeline system, facilities and employees are located in Missouri, Kansas, Oklahoma, Wyoming, Colorado, Nebraska and Texas, with their headquarters in Owensboro, Kentucky.

Tudor Pickering Holt & Co., which is working on the sale, has recently sent offering documents to potential bidders. According to sources, several companies could be interested in the natural gas operator:

• Tallgrass Energy Partners LP
• TransCanada Corp.
• Williams Cos.
• Spectra Energy Corp.
• Boardwalk Pipeline Partners LP
• Caisse de Depot et Placement du Quebec
• Macquarie Group Ltd.

The transaction value is estimated at US$1.5 billion.

We have recently reported about several M&A transactions in the energy sector in the USA:

• Duke Energy buys majority interest in REC Solar
• Cube Hydro Partners, LLC invests in ten run-of-the-river power plants in the U.S. Mid-Atlantic States
• Blackrock acquires 50% stake in 200MW Hereford Wind Project from EDF
• The Tennessee Valley Authority acquires 760 MW Quantum Choctaw combined-cycle power plant
• Northleaf Capital Partners partners with Ormat Technologies to invest in Power Plants
• Starwood Energy acquires of Quail Run Energy Center
• ArcLight Capital Partners LLC sells Bayonne Energy Center
• DTE Energy to acquire 350 MW of gas power
• Sharp Corporation sells Recurrent Energy to Canadian Solar