This week’s buyers: Koch Industries and Madalena Energy

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Koch Industries buys PetroLogistics

Flint Hills Resources, a subsidiary of Koch Industries, agreed to buy PetroLogistics – the only independent dedicated propylene producer in the U.S. – in a deal valued at $2.1 billion, including debt – Reuters reported on Wednesday.

PetroLogistics’ propane dehydrogenation plant produces about 1.45 billion pounds of propylene per year. The unit, Flint Hills Resources LLC, a refining, chemicals and biofuels company, will also buy all of the membership interests in PetroLogistics general partner PetroLogistics GP LLC.

Flint Hills will pay $14 in cash for each PetroLogistics unit to minority shareholders who own 27 percent of the company. A group of shareholders who control the remaining 73 percent stake will get $12 per unit.

This group includes Lindsay Goldberg LLC, York Capital Management, PetroLogistics’ executive chairman, David Lumpkins, and its chief executive, Nathan Ticatch.

The minority shareholders will get $526.2 million, while the majority shareholders will get $1.22 billion, according to Reuters calculations.

PetroLogistics’ units closed at $12.93 on the New York Stock Exchange on Tuesday.

Madalena Energy Inc. to buy Gran Tierra Argentine assets

The Calgary-based drilling company Madalena Energy Inc. will increase its Argentinian resources by 3,028 barrels of oil equivalent p/day after the acquisition of conventional fields owned by Gran Tierra, for $63 million, Bloomberg reported yesterday.

As of December 2013, Calgary-based Gran Tierra owned 890,000 net acres in the provinces of Salta, Formosa and Rio Negro.

Madalena owns 136,000 acres of shale in Argentina’s Vaca Muerta – the world’s fourth largest shale deposits. The company has stakes in three blocks in the prolific Neuquen basin in Argentina as well as owning 92,800 acres in Paddle River, Alberta.

Madalena will pay $49 million in cash and $14 million with shares, the company said. The acquisition is expected to close by June 30.

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