ZU_09/E+ by way of Getty Pictures
Crestwood Fairness Companions (NYSE:CEQP) mentioned Monday that proxy advisory agency Glass Lewis recommends unitholders vote to approve Vitality Switch’s (NYSE:ET) ~$7B supply to purchase the partnership, forward of the particular assembly of unitholders scheduled for October 30.
A merger “would mitigate dangers and longer-term challenges related to Crestwood enterprise which might be inherent for a smaller scale firm,” and unitholders “would profit from entry to a stronger steadiness sheet and better potential for worth creation in comparison with the standalone establishment,” Glass Lewis mentioned.
Final week, proxy advisory ISS mentioned “the strategic rationale is compelling and CEQP buyers could have a possibility to take part within the potential upside of the mixed entity.”
Underneath the deal phrases, Crestwood (CEQP) frequent unitholders would obtain 2.07 Vitality Switch (ET) frequent items for every Crestwood frequent unit; upon closing, Crestwood frequent unitholders would personal ~6.5% of Vitality Switch’s excellent frequent items.