ONEOK, Inc. announced that the two leading proxy advisory firms, Institutional Shareholder Services and Glass Lewis & Co. , have recommended that ONEOK shareholders vote in favor of all proposals related to ONEOK’s pending acquisition of Magellan Midstream Partners, L.P. at ONEOK’s upcoming Special Meeting of Shareholders.
In making the recommendations, ISS and Glass Lewis stated in their September 7, 2023, and September 6, 2023, reports, respectively1:
- “On balance, given the expected financial strength of the combined company, including the benefits of the tax basis step-up, the expected EPS and free cash flow accretion, and the operational synergies, support FOR the proposed transaction is warranted.” (ISS)
- “Strategically, we believe the proposed merger could be beneficial to shareholders/unitholders of both the merger parties, as the deal would result in the creation of a combined energy infrastructure firm with greater scale, breadth and earnings diversity. The proposed merger is also expected to yield meaningful annual cost synergies and enhanced commercial opportunities for the combined company.” (Glass Lewis)
“The support of ISS and Glass Lewis further highlights the value our transaction is expected to provide ONEOK shareholders and Magellan unitholders,” said Pierce H. Norton II, ONEOK president and chief executive officer.
“Our combination brings together two premier energy infrastructure companies dedicated to delivering essential energy products and services to our customers and shareholder value. We look forward to the many strategic opportunities ahead for us as one company.”
Additionally, ISS and Glass Lewis have recommended in separate reports that Magellan unitholders vote in favor of the pending acquisition.
The ONEOK board of directors unanimously recommends that shareholders vote “FOR” all proposals provided in detail in the definitive proxy statement.
ONEOK shareholders who need assistance voting or have questions regarding the Special Meeting may contact ONEOK’s proxy solicitor:
Innisfree M&A Incorporated:
- Shareholders may call toll free: 877-750-9499
- Banks and Brokers may call collect: 212-750-5833
The transaction is expected to close in the third quarter of 2023, subject to approval by both ONEOK shareholders and Magellan unitholders, and other customary closing conditions.
Source: press release