, 17 tweets, 9 min read Read on Twitter
Not enough people are talking about the $TGE sideletters written in the original Blackstone $BX purchase of TGE's GP and LP shares.

$TGE shareholders:
Do you want what $BX offered you? $19.50/sh
Or do you want the same $26.25/sh as the management team?

Sweetener on the way?
Also, what's up with the near-daily Blackstone buying in the open market (April / May after the initial purchase)...which then came to a screeching halt because they canceled that 10b-5 program? $TGE started to crater after that...

I would like to hear the rationale
I'm apparently not the only one...
Morningstar note highlights some interesting 1Q conf call quotes by the CEO.

Shouldn't ALL $TGE Class A shareholders get the same offer price?

#AllTGEClassAShareholderLivesMatter
Here is the 1Q $TGE transcript when it was trading at $24.42/sh. Shares collapsed to $14.35 before $BX just offered $19.50 to the peasants.

Easy to leave "$50M invested" in the business when you have a preferential management sideletter option for your own shares at $26.25/sh...
Investors will be watching closely as Tallgrass $TGE forms a "conflicts committee" and evaluates the proposal from Blackstone $BX.

In the name of #Governance, there should be pushback to the price non-management $TGE shareholders are getting.
Unlike most energy CEOs, I actually respect $TGE CEO David Dehaemers. For the most part, he (and his team) has done what he said he was going to do. $TEP unitholders did well since IPO. $TEGP (now $TGE) did a little less well in a tough market.

I think there will be a sweetener.
Historically, the GPs of MLPs and Up-Cs forming "conflicts committees" to evaluate transactions have not done much for LPs

If the $BX sideletter w/ $TGE has not been altered/nixed...it'd be a TERRIBLE look to offer investors a 26% discount to what mgmt gets on the SAME shares.
If Blackstone follows the #GPPlaybook and hangs $TGE LPs out to dry with this discounted offer..

It will be yet ANOTHER bullet point on the list of LPs taken advantage of by GPs

And yet ANOTHER reason why generalist investors have abandoned the energy sector and left it to die
And yet another reason why the incremental midstream energy investor will be buying actual C-Corps with actual corporate governance, independent boards, voting rights, and access to a broader investor pool.

Not MLPs
Not Up-C Corps, which are basically MLPs with a 1099 tax form
Since Citi is $BX's advisor on this...we all know we won't hear a peep outta their research dept about a potential sweetener

For the rest of you sellsiders, here's your chance to shine. So far, Morningstar is the ONLY one calling out the lowball offer for non-mgmt shareholders
Morningstar: "Existence of Tallgrass and Blackstone Side Letter Is Awful Corporate Governance"

🔥🔥🔥
$TGE $BX
* @EthanHBellamy has entered the chat w/ some refreshing TRUTH *

"Side Letter Agreements Unpalatable" 🔥

"In the absence of some justification this insider feature would be an Animal Farm result for common holders" 🔥

$TGE $BX
(Pls contact ur Baird sales rep for more info 😉)
@EthanHBellamy You guys, I didn't want to have to do this, but I have no other choice but to create a meme or two to express my true feelings on this Blackstone $BX Side Letter Agreement that is giving preferential treatment to Tallgrass $TGE management over all other shareholders

Please hold.
@EthanHBellamy .@blackstone you may have a big balance sheet, but Energy FinTwit has an army of battle-hardened minions that have suffered through years of mistreatment by self-dealing GPs like you. We can win the hearts and minds via crude memes and the ability to call out bullshit.
$TGE $BX
@EthanHBellamy @blackstone Disclosure: I am long shares of $TGE, obviously.
@EthanHBellamy @blackstone Hey, @blackstone $BX, I always hear your CEO Stephen Schwarzman crowing about the importance of #ESG in the media when he is raising capital.

Is this lowball offer for @TallgrassEnergy $TGE shares (outside of what mgmt gets) part of that "global ESG initiative"

Let me know. Thx
@EthanHBellamy .@liamdenning, the man that highlights the self-dealing actions & egregious governance of energy mgmt teams (he's been very busy!), has a new article out on the Blackstone $BX bid for Tallgrass $TGE.

TGE saying the side letters "ensure cont'd alignment b/n mgmt & equityholders!"
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