Colonial Pipeline Owners Eye Sales As Company Value Exceeds $10 Billion

Some of Colonial Pipeline's owners are exploring divesting their stakes, hoping they can fetch prices that would value the largest US fuel transportation system in excess of $10 billion, according to people familiar with the matter, David French reported for Reuters.

A subsidiary of Koch Industries, the remaining co-owner, has indicated it plans to keep its 28.1% stake in Colonial. I Photo: Colonial Pipeline Facebook

Growing US energy consumption has raised demand for pipeline capacity. Any deal would test the company's value three years after a major cyberattack disrupted its operations.

Canadian pension fund Caisse de dépôt et placement du Québec (CDPQ) has begun working on the sale of its 16.6% stake in Colonial, while three co-owners that collectively account for 55.3% of the equity in Colonial are discussing whether to follow suit, the sources said.

These three parties are oil major Shell and investment firms IFM Investors and KKR, the sources added. Infrastructure funds, public pension funds, and sovereign wealth funds are among potential buyers, according to the sources.

A subsidiary of Koch Industries, the remaining co-owner, has indicated it plans to keep its 28.1% stake in Colonial, one of the sources said. A cyberhack caused a days-long shutdown of Colonial's pipeline in 2021, disrupting fuel supplies to thousands of filling stations and airports.