Martin Midstream Companions LP (MMLP) and investor Martin Useful resource Administration Corp. (MRMC) have mutually terminated a deal beneath which MRMC would purchase MMLP widespread items it didn’t already personal.
The cancellation comes after two different buyers opposed the takeover by MRMC, which owns the one hundred pc basic partnership curiosity in MMLP. The 2 different buyers, Nut Tree Capital Administration LP and Caspian Capital LP, had misplaced a higher-priced counter-offer.
Underneath the transaction agreed between MMLP and MRMC, every non-MRMC-owned widespread unit representing a restricted partnership curiosity in MMLP could be transformed into money. MMLP was to outlive as a completely owned subsidiary of MRMC.
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MRMC initially proposed a purchase order value of $3.05 per unit. Nut Tree and Caspian, which personal restricted partnership pursuits in MMLP responded with a counter-offer to purchase the widespread items focused in MRMC’s proposal for $4 a unit.
Nut Tree and Caspian later raised their proposal to $4.5 per unit and expressed willingness to extend their provide additional, in line with regulatory filings.
Nevertheless, on October 3, MMLP introduced a definitive settlement beneath which MRMC would purchase all MMLP widespread items it didn’t already personal for $4.02 per unit, rebuffing Nut Tree and Caspian’s elevated provide.
In keeping with statements from MMLP, its buy by a celebration apart from MRMC would probably necessitate the acquisition of its basic companion, which is owned by MRMC. MMLP has stated it couldn’t make a sale transaction with one other occasion as a result of MRMC had no intention of promoting the final companion.
MRMC owns about 15.7 p.c of MMLP widespread items, whereas Nut Tree and Caspian have “financial publicity” of round 13.2 p.c of MMLP widespread items, in line with data shared with the USA Securities and Trade Fee.
Saying the termination of the takeover settlement with MRMC, MMLP stated it could “proceed to function as a standalone publicly traded firm”.
Bob Bondurant, president and chief govt of MMLP’s basic companion, stated, “We admire the suggestions we’ve acquired from unitholders throughout our intensive outreach and engagement during the last a number of weeks”.
“We tremendously worth unitholders’ views and are happy that unitholders believe in the way forward for MMLP as a standalone firm”, Bondurant added.
“We are going to proceed to deal with executing our long-term technique, together with strengthening the stability sheet by debt discount and bettering working outcomes, to create worth for unitholders”.
Specializing in the USA Gulf Coast, MMLP affords terminaling, processing and storage companies for crude oil and petroleum merchandise. It additionally affords land and marine transport for oil, chemical substances and different merchandise. MMLP additionally distributes pure fuel liquids and affords mixing and packaging companies for lubricants and grease, in addition to manufactures sulfur and sulfur-based merchandise.
Kilgore, Texas-based MRMC distributes asphalt, diesel gas, gas oil and naphthenic lubricants. “MRMC markets over 250 million gallons of diesel gas and lubricants per yr alongside the Gulf Coast and over 1.5 million barrels of naphthenic lubricants and base oils per yr all through the USA”, it says on its web site.
To contact the creator, electronic mail jov.onsat@rigzone.com
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