Nut Tree and Caspian Urge Martin Midstream Unitholders to Reject Merger with MRMC
(P&GJ) — Nut Tree Capital Management and Caspian Capital, holding a combined 13.6% stake in Martin Midstream Partners (MMLP), have filed definitive proxy materials opposing the company’s proposed $4.02 per unit merger with Martin Resource Management Corporation (MRMC).
The vote is scheduled for December 30, 2024.
In a letter to MMLP unitholders, Nut Tree and Caspian urged voting against the deal, citing concerns over valuation and transparency. They argue that the offered price undervalues MMLP, stating, “MMLP has a bright future as a publicly traded company and is worth far more than the $4.02 per unit being offered.”
"Based on industry-standard valuation methodologies, we believe this is an extremely inadequate price and would unfairly transfer significant value that rightfully belongs to MMLP unitholders to the Company's insiders, including the ultimate control person of MRMC, Ruben Martin, III,” Nut Tree and Caspian said. “By voting AGAINST the proposed merger with MRMC, MMLP unitholders have an opportunity to protect the value of their investment."
The firms also criticized the financial analysis supporting the merger, calling it “deeply flawed” and dismissive of MMLP’s growth potential. They highlighted conflicts of interest, particularly involving Ruben Martin III, the ultimate controller of MRMC, suggesting that insiders would benefit at unitholders’ expense.
Nut Tree and Caspian believe rejecting the merger would protect unitholders' investments and prevent what they describe as a transfer of value to insiders.
Related News
Related News
- Trump Aims to Revive 1,200-Mile Keystone XL Pipeline Despite Major Challenges
- $3 Billion Natural Gas Pipeline Expansion to Add 1.3 Bcf Capacity in Southeast Region
- Energy Transfer Reaches FID on $2.7 Billion, 2.2 Bcf/d Permian Pipeline
- Boardwalk Approves 110-Mile, 1.16 Bcf/d Mississippi Kosci Junction Pipeline Project
- Kinder Morgan Approves $1.4 Billion Mississippi Crossing Project to Boost Southeast Gas Supply
- Tullow Oil on Track to Deliver $600 Million Free Cash Flow Over Next 2 Years
- GOP Lawmakers Slam New York for Blocking $500 Million Pipeline Project
- Enbridge Should Rethink Old, Troubled Line 5 Pipeline, IEEFA Says
- Energy Transfer Reaches FID on $2.7 Billion, 2.2 Bcf/d Permian Pipeline
- Polish Pipeline Operator Offers Firm Capacity to Transport Gas to Ukraine in 2025
Comments