The acquisition of Tulsa’s Blueknight Energy Partners by its generator partner Ergon, Inc. is moving closer to completion.
A proxy statement was filed this week with the Securities and Exchange Commission laying out the proposed agreement and plan of merger. It indicated a special meeting of shareholders will be held but no date was cited in the filing.
Under the takeover, Ergon would acquire all of the outstanding common and preferred units of the partnership not already owned by Ergon and its affiliates. Ergon initially made the offer in the fall of last year.
Under the agreement for the all-cash transaction, Ergon offered $4.65 for each common unit which represented a 51.5% premium to the market closing price as of Oct. 8, 2021. Holders of the Public Preferred Units would receive $8.75 per unit owned and represented a 5.3% premium to the market closing price at the time of the offer.
A Conflicts Committee created by the Blueknight Energy Partners Board of Directors unanimously approved the transaction according to the SEC filing.
The merger is expected to be completed by the middle of this year.
Ergon is headquartered in Mississippi and its Ergon Asphalt and Emulsions segment is considered to be the largest asphalt marketer in North America.
Ergon’s seven primary business segments include: Refining & Marketing, Specialty Chemicals, Asphalt & Emulsions, Oil & Gas, Midstream & Logistics, Construction & Real Estate, and Corporate & Other.