ONEOK, Inc. (OKE) Acquisition of Magellan Midstream Partners, L.P. (NYSE: MMP)
On May 14, 2023, ONEOK, Inc. (NYSE: OKE) ("ONEOK") and Magellan Midstream Partners, L.P. (NYSE: MMP) ("Magellan") announced that they had executed a definitive merger agreement under which ONEOK will acquire all outstanding units of Magellan in a cash-and-stock transaction valued at approximately $18.8 billion including assumed debt, resulting in a combined company with a total enterprise value of $60 billion, based on May 12, 2023 closing prices.
ONEOK will hold a Special Meeting of Shareholders in connection with the proposed acquisition. The meeting will be held online and will be accessible through a live webcast. Shareholders of record as of July 24, 2023, are entitled to vote at the meeting.
Register to attend the meeting at www.proxydocs.com/OKE. Enter the control number from your proxy card when registering.
Transaction Highlights:
- The consideration will consist of $25.00 in cash and 0.6670 shares of ONEOK common stock for each outstanding Magellan common unit.
- The consideration represents an implied value to each Magellan unitholder of $67.50 per unit, for a 22% premium, based on May 12, 2023, closing prices.
- The transaction brings together two premier energy infrastructure businesses with strong returns on invested capital and diverse free cash flow generation.
- Larger scale enhances existing investment-grade credit profile.
Additional Information: