In creating one of the largest US energy pipeline companies, Magellan Midstream Partners unitholders voted in favour of its sale of $US18.8 billion, to larger rival ONEOK Inc, reported Reuters.
Glass Lewis & Co and ISS, independent proxy advisory firms, recommended a vote in favour of the sale after it had come under scrutiny in June 2023. Energy Income Partners LLC, one of the top shareholders in Magellan Midstream with roughly a 3% stake, had said they would vote against the deal due to a burdensome tax structure.
However, the preliminary results indicate that approximately 96% of the votes cast were in favour of the transaction.
Yet, unitholders did vote against executive officers related to the deal being paid compensation.
Magellan, in its proxy, cautions that the merger is not conditioned on the compensation vote and that if the acquisition is approved, the executive compensation is payable.
The proxy showed that after the merger Chief Executive Aaron Milford would get about US$28 million in cash, stock and benefits.
Michael Mears, Magellan's previous Chief Executive Officer, also would receive about US$26.5 million in equity, whilst Jeff Holman, Chief Financial Officer would receive around US$15 million.
Additionally, the company's current Chief Commercial Officer and general council will receive multi-million-dollar packages.
Magellan, however, stated that when considering future executive pay, it expects ONEOK to acknowledge the outcome of the compensation vote, along with other factors.
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Read the article online at: https://www.worldpipelines.com/business-news/22092023/magellan-midstream-approves-sale-to-oneok/
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