ONEOK Inc. and Magellan Midstream Partners’ shareholders on Sept. 21 voted to approve an $18.8 billion merger of the two infrastructure companies, despite some fierce pockets of resistance from investors, including Energy Income Partners (EIP).
ONEOK reported that preliminary results of a special meeting of shareholders resulted in approximately 96% of the common shares voted in favor of the transaction.
Magellan’s special meeting vote was closer, with 55% of outstanding units voting in favor. The results may partially reflect EIP’s opposition. EIA, the fourth largest unitholder of Magellan Midstream, had launched a website opposing the transaction.
ONEOK management had said it was confident the transaction, announced in May, would be approved. On Sept. 21, Pierce H. Norton II, ONEOK president and CEO, said he was pleased with the “strong support from ONEOK shareholders and Magellan unitholders, which reflects their belief in the power of our combination.”
"Having achieved this important milestone, we look forward to closing on September 25 and moving forward as one company with a continued commitment to creating value for our shareholders," he said.
Magellan CEO Aaron Milford said investors recognized the combination captured “full value for Magellan unitholders and are grateful for their constructive engagement over the past few months."
ONEOK and Magellan will each disclose the final vote results of stakeholders with the U.S. Securities and Exchange Commission. The merger remains subject to satisfaction of other customary closing conditions.
Upon completion of the transaction, Magellan unitholders will receive $25.00 in cash and 0.667 shares of ONEOK common stock for each outstanding Magellan common unit they own immediately prior to the effective time of the transaction.
The cash and stock deal, which includes assumption of debt, will have an enterprise value of $60 billion when the transaction closes.
Recommended Reading
CGG to Change Name to Viridien
2024-05-17 - The company’s new ticker symbol will be “VIRI” and listed on Euronext Paris, effective May 21.
Sector’s Appetite for Capital Remains Amid Consolidation Frenzy, Panelists Say
2024-05-17 - There’s still an appetite for capital in the oil and gas sector—companies just need to think creatively to find it, a number of panelists said during SUPER DUG in Fort Worth, Texas.
SilverBow Resets Shareholder Meeting After $2.1B Crescent Deal
2024-05-16 - SilverBow Resources said it will adjourn its May 21 shareholders’ meeting until May 29 following Crescent Energy’s agreement to buy the Eagle Ford operator.
Blue Racer Midstream Prices Senior Notes Offering
2024-05-15 - Net proceeds from the sale of senior notes will be used to pay off debt and other general corporate purposes.
Petrobras CEO Prates to Step Down
2024-05-15 - Brazil’s President Luiz Inácio Lula da Silva has requested that Petrobras CEO Jean Paul Prates resign following a dispute over dividend payments.