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.
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