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Chesapeake to sell $4 billion in assets

  |   June 8, 2012 at 12:47 PM
OKLAHOMA CITY, June 8 (UPI) -- U.S. natural gas giant Chesapeake Midstream Partners said Friday it would unload assets worth $4 billion in a deal with Global Infrastructure Partners.

Global Infrastructure has agreed to buy all of Chesapeake Energy Corp.'s interest in CHKM for $2 billion. In addition, Global Infrastructure has signed a letter of agreement to buy midstream assets from Chesapeake Midstream Development, the parent firm's wholly owned midstream subsidiary.

In a separate announcement, the energy giant said directors V. Burns Hargis and Richard Davidson each received about 26 percent support in a shareholder vote and would consequently resign from the board "as required by the company's new majority voting bylaw."

That bylaw became "effective immediately" Friday after the board superseded the point that its passage with 97 percent approval in a shareholder vote only represented 64 percent of the company's outstanding shares.

The 64 percent of share representation "was less than the two-thirds required for shareholder approval of a bylaw amendment," the firm said.

The board, however, took it upon itself to permit the bylaw to become policy.

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