Nut Tree Capital Management and Caspian Capital, holding a combined economic exposure of approximately 13.2% of Martin Midstream Partners L.P.'s (MMLP) outstanding common units, announced their opposition to the proposed $4.02 per unit sale to Martin Resource Management Corporation (MRMC) on October 22, 2024. The hedge funds assert that the proposed sale price significantly undervalues MMLP and its future prospects.
In response, MMLP issued a statement reaffirming its commitment to the pending transaction. The company highlighted that its Conflicts Committee, composed of three independent directors, conducted a thorough nine-month evaluation and unanimously determined the merger to be fair and in the best interests of MMLP and its unaffiliated unitholders.
MMLP's statement also noted that proposals submitted by Nut Tree and Caspian were not considered credible alternatives. The company emphasized that the $4.02 per unit offer represents a 34.00% premium to the market closing price prior to MRMC’s initial proposal on May 24, 2024, providing an attractive valuation and immediate liquidity to unitholders.
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