ISS recommends Magellan Midstream investors vote for Oneok transaction

Magellan Midstream Partners (MMP) announced that independent proxy advisory firm Institutional Shareholder Services recommends that unitholders vote “FOR” the pending merger with ONEOK, Inc. (OKE) at the virtual special meeting of unitholders scheduled to be held on Sept. 21, 2023. In its report dated Sept. 6, 2023, ISS stated:”…the board’s focus on securing a significant cash portion to the consideration suggests that MMP adequately considered the tax implications for its shareholders” and that “The deal terms imply a premium to MMP’s valuation, which already reflected a historical premium to MLP peers and was relatively in line with corporate peers. The premium also stands out among recent precedent transactions in this sector, and appears to compensate most investors for the immediate tax hit.” Magellan issued the following statement: “We are pleased that ISS, in addition to Glass Lewis, supports our board’s unanimous recommendation that unitholders vote FOR the merger with ONEOK. The recommendation from ISS recognizes the significant premium value the transaction delivers to Magellan unitholders through the meaningful upfront cash consideration as well as substantial ownership in a stronger combined company that has greater growth opportunities, scale, diversification and resilience. We look forward to working together with ONEOK to complete the transaction and deliver full and fair value for our unitholders.”