The value of Kinder’s holdings surged by almost a million after his statement that he would consolidate his companies to grow faster. Richard Kinder’s corporate empire control a pipeline network long enough to circle the Earth three times. Bringing together Kinder’s oil storage tanks, pipelines, and natural gas processing plants together will create the biggest infrastructure company in North America. At this point the companies stand at a combined market value of $106 million.
As chairman and CEO of the company, Kinder takes $1 a year salary and gets no bonus from any of his companies. His ownership stakes in his company, however, earned him $380 million in dividends last year, which should rise under the deal. The rapid expansion of the company and division in to multiple entities had created a burden in recent years because the partnership structure siphoned off cash for investors that the company needed to grow. Kinder will unify the company in to one single stock that he can use as currency to buy out competitors.
Kinder has been behind competitors like Willams Cos. and Enterprise Products Partners LP in the last three years. Kinder generated a 73% total return compared with 221% for Williams’ investors and Enterprise’s 130% return. Richard Kinder’s personal stake alone in the company (243.1 million shares) makes him the largest investor in the company which announced its plans on Sunday to absorb its three sisters. The merger is said to be completed by the end of this year.
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