RE:RE:RE:RE:RE:RE:Strategic Review$650 million is far above current market cap .
Subject to completion of customary conditions, AltaGas will acquire Pipestone and Dimsdale for total consideration of $650 million plus the assumption of power leases at Pipestone. The form of consideration will be $325 million in cash and $325 million in AltaGas common shares. Tidewater will receive approximately 12.5 million AltaGas common shares. Assets disposed of as part of the Transaction represent $55 - $60 million of Tidewater's normalized 2023 adjusted EBITDA.
The Transaction is subject to closing adjustments and conditions customary for a transaction of this nature and is not subject to any financing condition. The Transaction is also subject to a positive final investment decision ("FID") on the Pipestone Phase II project. To facilitate reaching FID, AltaGas and Tidewater have entered into an agreement to create a new joint venture (the "Pipestone Joint Venture") to advance the final steps required to develop and construct the project. The terms of the Pipestone Joint Venture will permit the parties to continue to collaborate on the Pipestone Phase II project, even if the Transaction does not proceed.
The Transaction has been unanimously approved by the Boards of Directors of both Tidewater and AltaGas. Closing is expected to occur in the fourth quarter of 2023 subject to satisfaction of all closing conditions. Tidewater expects to provide its updated guidance and strategic outlook following Transaction close.