Martin Midstream says Glass Lewis backs buyout deal with Martin Resource (updated)

Martin Midstream Partners LP

18/12/2024 22:28

(Updates with additional detail throughout on proposed
transaction, company structure, unit holdings)
       Dec 18 (Reuters) - Martin Midstream Partners  MMLP.O 
said on Wednesday that proxy advisory firm Glass Lewis has
recommended the energy infrastructure firm's unitholders vote
for the company's proposed buyout deal with Martin Resource
Management Corp.
    The announcement of the Glass Lewis report comes days after
Martin Midstream had said another proxy advisory firm,
Institutional Shareholder Services, had also recommended a
positive vote for the deal.
    Martin Midstream agreed to a $157-million deal with Martin
Resource Management Corp in October that would result in MRMC
acquiring the units it does not already own for $4.02 per common
unit. The agreed transaction came at a higher offer than MRMC
originally proposed in May.
    The proposed MRMC deal was unsuccessfully challenged by two
hedge funds that offered a competing bid to buy Martin
Midstream. Since then, Nut Tree Capital Management and Caspian
Capital, which have said they have combined economic interest
equivalent to 13.6% of Martin Midstream, have urged unitholders
to vote against the deal.
    The unitholder meeting on whether to sanction the MRMC
buyout is scheduled for Dec. 30.
    Martin Midstream, which focuses on storing and transporting
fuels, said Glass Lewis has reported the merger represents an
"attractive exit valuation and premium for the company's
unaffiliated unitholders".
    Nut Tree, Caspian, Glass Lewis and ISS did not immediately
respond to requests for comment.
    MRMC is headed by Ruben S. Martin III, whose father in 1951
set up the business to which MRMC and Martin Midstream trace
their roots. It currently holds 15.7% of the common units of
Martin Midstream and controls the general partner.
    Martin Midstream is structured as a tax-efficient master
limited partnership. In an MLP, the ownership is split into
publicly traded common units, and also general partner units
that have outsized influence because the owner of these units
controls the governance of the partnership. 

 (Reporting by Sourasis Bose in Bengaluru and David French in
New York; Editing by Vijay Kishore and Rod Nickel)
 ((Sourasis.Bose@thomsonreuters.com;))