Here is why Blueknight soared 40% | Invezz
Invezz is an independent platform with the goal of helping users achieve financial freedom. In order to fund our work, we partner with advertisers who compensate us for users that Invezz refers to their services. While our reviews and assessments of each product on the site are independent and unbiased, brands may pay to appear higher up our table rankings or place ads in specific areas of the site. The order in which products and services appear on Invezz does not represent an endorsement from us, and please be aware that there may be other platforms available to you than the products and services that appear on our website. Read more about how we make money >
Apr 23, 2022
Ergon to acquire Public Common Units and Public Preferred Units of Blueknight
Deal to close in mid-2022
Blueknight Energy Partners L.P. (NASDAQ: BKEP) shares jumped 40% after announcing a definitive deal and plan of merger under which an Ergon Inc. affiliate will purchase all its preferred and outstanding common units of the company that are currently not held by Ergon or its affiliates. The merger agreement comes at the heels of an offer from Ergon in October last year to purchase Public Preferred and Public Common units of Blueknight.
Ergon to acquire outstanding common and preferred units of Blueknight
Under the terms of the agreement, which will be an all-cash transaction, every Public Common Units holder will get $4.65 for each common unit held. This represents a 51.5% premium over the closing price of Ergon’s offer last year and a 40.5% premium over the preceding 30-day volume-weighted average selling price on April 21, 2022.
Are you looking for fast-news, hot-tips and market analysis?
Sign-up for the Invezz newsletter, today.
Also, every Public Preferred Units holder will get $8.75 for each preferred unit held, representing a high than the 52-week trading peak and a 5.3% premium on the closing price as of October 8, 2021, when Ergon made its offer. The price also reflects a 3.6^ premium to the 30-day weighted average volume on April 21, 2022.
Blueknight Energy Partners G.P. LLC Board of Directors, the company’s general partner, entrusted the power to review, analyze, bargain, and endorse the deal on behalf of the company and the Public Common Units holders to a disputes advisory board of the G.P. Board (the “BKEP Conflicts Committee”), comprising purely of the G.P. Board’s three independent directors (the “BKEP Conflicts Committee”).
Ergon to vote its shares on behalf of the deal
After consulting with independent financial and legal consultants, the BKEP Conflicts Committee voted to approve the deal on behalf of the owners of the Public Common Units. The G.P. Board authorized the deal after receiving the BKEP Conflicts Committee’s advice.
Pursuant to customary clearances, the acquisition is scheduled to completion in mid-2022. Ergon has pledged to vote its shares in favor of the deal.
68% of retail CFD accounts lose money
Energy & Power
Stocks & Shares