Investigation Overview
October 6, 2016 (Shareholders Foundation) - An investigation on behalf of investors, who currently hold shares of Cheniere Energy Partners LP Holdings LLC (NYSEMKT:CQH), was announced concerning whether the takeover of Cheniere Energy Partners LP Holdings LLC by Cheniere Energy, Inc for a value of $21.90 per share is unfair to NYSEMKT:CQH stockholders.
The investigation by a law firm concerns whether certain officers and directors of Cheniere Energy Partners LP Holdings LLC breached their fiduciary duties owed to NYSEMKT:CQH investors in connection with the proposed acquisition.
On September 30, 2016, Cheniere Energy Partners LP Holdings LLC (NYSEMKT:CQH) announced that its board of directors has received a proposal from Cheniere Energy, Inc. ('Cheniere') (NYSE MKT: LNG) pursuant to which Cheniere would acquire the publicly held shares of Cheniere Partners Holdings not already owned byCheniere Energy, Inc in a stock for stock exchange. Under the terms of the agreement, Cheniere Energy Partners LP Holdings LLC (NYSEMKT:CQH) shareholders will receive 0.5049 shares of Cheniere Energy, Inc common stock for each share of Cheniere Energy Partners LP Holdings LLC (NYSEMKT:CQH) common stock, the value of which is equivalent to $21.90 based on Cheniere Energy, Inc's closing price on September 29, 2016.
However, given that Cheniere Energy, Inc owns 80.1% of the issued and outstanding shares of Cheniere Energy Partners LP Holdings LLC (NYSEMKT:CQH) and that at least one analyst has set the high target price for NYSEMKT:CQH shares at $30.00 per share, the investigation concerns whether the offer is unfair to NYSEMKT:CQH stockholders. More specifically, the investigation concerns whether the Cheniere Energy Partners LP Holdings Board of Directors undertook an adequate sales process, adequately shopped the company before entering into the transaction, maximized shareholder value by negotiating the best price, and acted in the shareholders' best interests in connection with the proposed sale.