The Alberta Investment Management Corp. has agreed to acquire a 28 per cent ownership stake in San Antonio, Texas-based Howard Energy Partners from EnLink Midstream Partners, LP.
The transaction follows AIMCo’s initial investment in August 2016, which allowed for the purchase of up to US$500 million of series B preferred units of the midstream energy provider.
“AIMCo is very pleased to have the opportunity to increase our investment in Howard Energy Partners,” said Kevin Uebelein, AIMCo’s chief executive officer. “Since our preferred investment in August, we have forged a strong working relationship with Howard Energy Partners’ management team, as well as with the other investment partners, and we are confident in their opportunities for continued growth in the future.”
The transaction is expected to close during the first quarter of 2017, subject to customary closing conditions, including regulatory approvals.