Martin Midstream Partners terminates merger plan with Martin Resource Management (updated)

Martin Midstream Partners LP

26/12/2024 21:34

(Adds details in paragraphs 2-6)
       Dec 26 (Reuters) - 
    Martin Midstream Partners  MMLP.O  said on Thursday it will
terminate the previously agreed-upon $157 million merger deal
with Martin Resource Management Corp (MRMC).
    Martin Midstream, which focuses on storing and transporting
fuels, in October agreed to be taken over by its largest
shareholder, MRMC.
        Under the deal, MRMC was to pay $4.02 per unit in cash
for the common units it does not already own, after initially
offering in May to acquire Martin Midstream for $3.05 per unit.
  
        Two hedge funds, Nut Tree Capital Management and Caspian
Capital, in 
    July
     had made a competing bid, and had said they planned to try
and rally shareholders to vote against the deal with MRMC.
  
        They argued the MRMC offer undervalued Martin Midstream,
and they also raised concerns about conflicts of interest in the
acceptance process of the MRMC offer.
  
        The unitholder meeting on whether to sanction the MRMC
buyout, scheduled for Dec. 30, is now cancelled. 
  

 (Reporting by Pooja Menon in Bengaluru; Editing by Vijay
Kishore)
 ((Pooja.Menon@thomsonreuters.com;))