ONEOK Agreement to Acquire Remaining Common Units
ONEOK has recently announced an exciting agreement to acquire all outstanding publicly held common units of EnLink Midstream in a tax-free transaction. This acquisition, valued at $4.3 billion, will be made using ONEOK common stock.
Under this agreement, each outstanding common unit of EnLink will be converted into 0.1412 shares of ONEOK common stock. This exchange ratio was calculated based on the market close price of EnLink on November 22, 2024, and ONEOK’s 10-day volume-weighted average price. In total, approximately 37.0 million ONEOK shares will be issued as part of this transaction, making up about 6.0% of the total ONEOK shares outstanding.
The EnLink Conflicts Committee, made up of independent directors, has thoroughly reviewed and approved this transaction after consultations with legal and financial advisors. They have deemed it to be in the best interests of EnLink and its public unitholders. The merger is expected to be completed in the first quarter of 2025, pending approval from a majority of outstanding EnLink common unit holders and the fulfillment of customary closing conditions.
According to Pierce H. Norton II, the president and CEO of ONEOK, this acquisition is expected to benefit both ONEOK shareholders and EnLink unitholders. It will enhance trading liquidity and offer an attractive dividend yield. This move reflects ONEOK’s commitment to becoming a leading energy infrastructure company, creating value for all stakeholders.
In addition to this recent announcement, ONEOK recently completed the acquisition of Global Infrastructure Partners’ stake in EnLink Midstream for a total cash consideration of approximately $3.3 billion. Leading financial advisor Goldman Sachs & Co. LLC is guiding ONEOK through this transaction, with legal support from Kirkland & Ellis LLP. Evercore is advising the EnLink Conflicts Committee, alongside legal advisors Richards, Layton & Finger, P.A., and Baker Botts L.L.P.
For those looking ahead, this merger presents exciting opportunities for growth and value creation in the energy industry. While there are always risks associated with such transactions, ONEOK and EnLink are taking strategic steps to mitigate potential challenges and ensure a successful integration. Stay tuned for more updates as this agreement progresses towards completion.
