TULSA, Okla. – Stock in Magellan Midstream Partners, L.P. (NYSE: MMP) nosedived following a March 2 announcement that it had reached an agreement with Magellan Midstream Holdings, L.P. (NYSE: MGG) on March to “simplify” their capital structure by transforming the incentive distribution rights and approximately two percent economic interest of MMP's general partner into MMP common units.
Unitholders will receive 0.6325 MMP common units in exchange for each MGG common unit they own at closing, representing a 25 percent premium to the March 2 closing price of MGG's common units. The “simplification” will result in MGG being dissolved and in MMP owning its general partner, which will no longer have an economic interest in MMP.
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