It’s official! Two of Tulsa’s largest energy companies are merging. ONEOK, Inc. and Magellan Midstream Partners, L.P. announced Thursday at their respective special meetings that their merger was approved.
“We are very pleased with the strong support from ONEOK shareholders and Magellan unitholders, which reflects their belief in the power of our combination,” said Pierce H. Norton II, ONEOK President and Chief Executive Officer. “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.”
“We appreciate that investors recognize the combination with ONEOK captures full value for Magellan unitholders and are grateful for their constructive engagement over the past few months,” said Aaron Milford, Magellan Chief Executive Officer. “Together, we believe the combined company will have stronger growth prospects and generate greater value than Magellan could deliver standalone, and we are excited to be one step closer to uniting our teams.”
According to preliminary results of the ONEOK Special Meeting of Shareholders, approximately 96% of the common shares voted were in favor of the transaction.
The Magellan Special Meeting of Unitholders had approximately 76% of the common units voted, or 111.2 million units, were cast in favor of the merger, resulting in 55% of outstanding units voting in favor.
ONEOK and Magellan will each disclose the final vote results of their respective Special Meetings on their 8-K filings with the U.S. Securities and Exchange Commission. The merger remains subject to satisfaction of other customary closing conditions and is anticipated to close by Monday, September 25, 2023. Magellan common units are expected to cease trading on the New York Stock Exchange at the close of business on Friday, September 22.
As previously announced, 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.