Oct 23, 2024 activistcompany

Nut Tree and Caspian Oppose Sale of Martin Midstream Partners (MMLP) to MRMC

Key Summary: On October 22, 2024, Nut Tree Capital Management L.P. and Caspian Capital L.P. announced their opposition to the proposed sale of Martin Midstream Partners L.P. (MMLP) to Martin Resource Management Corporation (MRMC) for $4.02 per common unit not owned by MRMC.

Market Cap: $155 million | Martin Midstream Partners L.P., together with its subsidiaries, provides terminalling, processing, storage, and packaging services for petroleum products and by-products primarily in the United States.

On October 22, 2024, Nut Tree Capital Management L.P. and Caspian Capital L.P. announced their opposition to the proposed sale of Martin Midstream Partners L.P. (MMLP) to Martin Resource Management Corporation (MRMC) for $4.02 per common unit not owned by MRMC. Together, Nut Tree and Caspian hold approximately 13.2% of MMLP's outstanding units and are aligned with unaffiliated unit holders to protect the company's long-term value. They believe the sale price undervalues MMLP and that MRMC would benefit disproportionately if the merger proceeds. Nut Tree and Caspian plan to file a proxy statement with the SEC to solicit votes against the transaction at the upcoming special meeting. Source

On November 1, 2024, Nut Tree Capital Management L.P. and Caspian Capital L.P filed proxy materials strongly opposing the Merger and urge MMLP unitholders to vote “AGAINST” the MMLP Merger Proposals because they believe that the Merger dramatically undervalues the Company and is not in the best interests of MMLP unitholders.

On November 29, 2024, Nut Tree Capital Management and Caspian Capital reiterated MMLP unitholders to vote against the company's proposed merger with insider-controlled Martin Midstream Resource Corporation (MRMC) at the upcoming special meeting on December 30, 2024. They argue the $4.02 per unit offer is significantly undervalued, with their analyses suggesting MMLP's true worth is far higher—ranging from $6.90 to over $15 per unit. They criticize the flawed valuation process, the merger's unfair benefit to MRMC insiders, and the lack of consideration for alternative offers. Source

On December 8, 2024, Nut Tree and Caspian issued an Investor Presentation titled “The Case for Voting AGAINST the MMLP-MRMC Merger"

More like this

Daniel J. Mangless nominated Board candidates to Zevra Therapeutics (ZVRA)

H Partners Launches Withhold Campaign Against Harley-Davidson (HOG) Board

Meruelo Offers Board Role After Discussing Debt Plans with Bausch Health Companies (BHC)

Pontifax Management entered into a Letter Agreement with Keros Therapeutics, Inc (KROS)

The Founders Group, comprising Ransom and Valerie Wuller, Luis Dussan, and Pamela Bauer nominated Board candidates to AEye, Inc (LIDR)

Edge One Capital Management to Engage with BuzzFeed, Inc (BZFD)