Sunoco Logistics Partners L.P. (SXL) and Energy Transfer Partners, L.P. (ETP) have announced that at a special meeting of ETP unitholders held on 26 April, the unitholders voted to adopt the Agreement and Plan of Merger dated as of 20 November 2016, as amended (the Merger Agreement), by and among ETP, SXL, their respective general partners, certain wholly owned subsidiaries of SXL and, solely for certain provisions therein, Energy Transfer Equity, L.P. (ETE), pursuant to which ETP will become a wholly owned subsidiary of SXL.
Based on the results, 88% of the units voted at the special meeting voted in favour of adoption of the Merger Agreement. The votes in favour of the Merger Agreement constituted more than a majority of ETP’s units outstanding as of the record date for the special meeting, and, as a result, the Merger Agreement was approved and adopted by the ETP unitholders. The merger is expected to close on 28 April 2017. The combined company will be named Energy Transfer Partners, L.P. and its common units are expected to begin trading on the New York Stock Exchange under the ‘ETP’ ticker symbol on 1 May 2017.
ETE management has advised ETP that ETE confirms its intention to continue to support the growth of the combined company in a manner consistent with ETE’s prior support transactions, thereby continuing the alignment of the interests of ETE and the combined company. This support from ETE may include additional incentive distribution subsidies or other actions that have the effect of reducing the cost of capital for the equity of the combined company. This support may also include the purchase of equity of the combined company by ETE to help fund growth capital projects of the combined company.
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