The second-largest holder of Chesapeake Midstream Partners LP
(CHKM) offered to sell its stake in the pipeline operator,
according to a filing with the Securities and Exchange
Commission.
Private investment fund Global Infrastructure Partners will
offer at least 9.3 million units in the company with the option to
sell more, Chesapeake Midstream's SEC filing said Wednesday.
The partnership's units were down 3.9% at $28.59 in recent
after-hours trading.
Chesapeake Midstream was formed by natural-gas giant Chesapeake
Energy Corp. (CHK) and GIP to operate gas-gathering systems and
other midstream energy assets. It went public in 2010.
GIP now owns about 13% of the limited partnership, while
Chesapeake Energy recently owned about 49%, according to FactSet
Research.
Chesapeake Energy has recently spun off several gas-distribution
assets and is working to diversify its upstream holdings to lessen
its exposure to natural gas as prices for the fuel wallow in North
America.
GIP indirectly owns half of Chesapeake Midstream's general
partner.
-By Drew FitzGerald, Dow Jones Newswires; 212-416-2909;
Andrew.FitzGerald@dowjones.com