Leading Proxy Advisory Firm ISS Recommends That MarkWest Unitholders Vote “For” the Combination of MPLX and MarkWest
MarkWest Energy Partners, L.P. (NYSE: MWE) (MarkWest) announced today
that Institutional Shareholder Services (“ISS”), a leading independent
proxy advisory firm, has issued a report recommending that MarkWest
unitholders vote FOR the combination of MPLX (NYSE: MPLX) and MarkWest.
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Frank M. Semple, Chairman, President and Chief Executive Officer of
MarkWest Energy GP, L.L.C. said, “We are pleased that ISS has
recommended that our unitholders vote to support the Partnership’s
combination with MPLX LP (“MPLX”). The ISS report provides our
unitholders with an excellent analysis on the strategic advantages of
the combination and the value of the parental support from Marathon
Petroleum Corporation. We look forward to completing the transaction and
executing on the significant growth opportunities created by this
transaction which will further enhance our existing, customer focused,
growth strategy.”
In recommending that unitholders vote in favor of the MarkWest-MPLX
combination, ISS’s report, issued on November 17, 2015 stated:
“Given the premium to the unaffected price at announcement, the
subsequent cash increases in the merger consideration, and the strategic
advantages of the combination (including both the access to relatively
more certain capital sources at a lower cost of capital and the ability
to de-risk certain growth opportunities with Marathon as its parent), a
vote FOR the merger is warranted.” (ISS Report, November 17, 2015)
ISS further stated:
"Though the value of the equity component of the consideration has
declined since the announcement, this appears to be driven by macro
issues with the sector at large, as suggested by the similarly sharp
decline of the S&P MLP index over the same period. Though the market
value of the merger consideration at the close of Nov. 17, 2015 -
despite the two increases in cash consideration - represents a 13.9
percent discount to the unaffected price, the unaffected price itself
had been falling - in the face of the same sector headwinds - through
much of the sales process. Without the transaction, it seems doubtful
the current market price would be anywhere near the unaffected price."
(ISS Report, November 17, 2015)
The transaction is subject to approval by MarkWest unitholders and other
customary closing conditions and, subject to the satisfaction of those
conditions, is expected to close in Dec. 2015. The date of the special
meeting of MarkWest common unitholders is Dec. 1, 2015. MarkWest
unitholders of record as of Oct. 5, 2015, will be entitled to vote on
approval of the merger and the associated proposals.
MarkWest unitholders are urged to vote “FOR” the merger and related
matters and submit their proxy as promptly as possible, either by
telephone, via the internet or by marking, signing and dating the proxy
card that was provided to unitholders along with the proxy statement and
prospectus.
If you abstain from voting, fail to cast your vote in person or by proxy
or fail to give voting instructions to your broker, bank or other
nominee, it will have the same effect as a vote “AGAINST” the merger
proposal. On November 17, 2015 MarkWest began mailing supplemental proxy
materials.
Your vote is very important regardless of the number of MarkWest
common units you own. The merger cannot be completed unless the
holders of at least a majority of the outstanding MarkWest common units,
voting together as a single class, vote for the proposal to approve the
merger agreement and the transactions contemplated thereby at the
special meeting of MarkWest common unitholders (the “Merger Proposal”).
At the special meeting, MarkWest common unitholders will also vote on an
advisory compensation proposal (the “Advisory Compensation Proposal”)
and on a proposal to adjourn the special meeting, if necessary, to
solicit additional proxies if there are not sufficient votes to approve
the merger agreement and transactions contemplated thereby at the time
of the special meeting (the “Adjournment Proposal”).
If you have already voted and would like to revoke your proxy or change
your vote, you may do so at any time before the special meeting of
MarkWest common unitholders. If you are a MarkWest common unitholder of
record, you may revoke your proxy and/or change your vote, or if you
have not yet voted you may do so, at any time before 11:59 p.m. Eastern
Time on Nov. 30, 2015 (the “Telephone/Internet Deadline”) or before the
polls close at the MarkWest special meeting by (1) sending a written
notice, which is received prior to the Telephone/Internet Deadline, to
MarkWest at 1515 Arapahoe Street, Tower 1, Suite 1600, Denver, Colorado
80202, Attn: Corporate Secretary, that bears a date later than the date
of the proxy and states that you revoke your proxy, (2) submitting a
valid, later-date proxy by mail, telephone or Internet that is received
prior to the Telephone/Internet Deadline or (3) attending the special
meeting of MarkWest common unitholders and voting by ballot in person
(your attendance at the MarkWest special meeting will not, by itself,
revoke any proxy that you have previously given). If you hold your
MarkWest common units in “street name,” you should follow the
instructions of your broker, bank or other nominee regarding the
revocation of proxies. If your broker allows you to submit a proxy via
the Internet or by telephone, you may be able to change your vote by
submitting a new proxy via the Internet or by telephone or by mail.
About MarkWest Energy Partners
MarkWest Energy Partners, L.P. is a master limited partnership that owns
and operates midstream service businesses. MarkWest has a leading
presence in many natural gas resource plays including the Marcellus
Shale, Utica Shale, Huron/Berea Shale, Haynesville Shale, Woodford Shale
and Granite Wash formation.
Cautionary Statement Regarding Forward-Looking Statements
This communication includes “forward-looking statements.” All statements
other than statements of historical facts included or incorporated
herein may constitute forward-looking statements that involve a number
of risks and uncertainties. These statements may include statements
regarding the proposed acquisition of MWE by MPLX, the expected
timetable for completing the transaction, benefits and synergies of the
transaction, future opportunities for the combined company and any other
statements regarding MWE’s and MPLX’s future operations, anticipated
business levels, future earnings and distributions, planned activities,
anticipated growth, market opportunities, strategies and competition.
All such forward-looking statements involve estimates and assumptions
that are subject to a number of risks, uncertainties and other factors
that could cause actual results to differ materially from those
expressed or implied in such statements. Factors that could cause or
contribute to such differences include: factors relating to the
satisfaction of the conditions to the proposed transaction, including
regulatory approvals and the required approval of MWE’s unitholders; the
parties’ ability to meet expectations regarding the timing and tax
treatment of the proposed transaction; the possibility that the combined
company may be unable to achieve expected synergies and operating
efficiencies in connection with the transaction within the expected
time-frames or at all; the integration of MWE being more difficult,
time-consuming or costly than expected; the effect of any changes
resulting from the proposed transaction in customer, supplier and other
business relationships; general market perception of the proposed
transaction; exposure to lawsuits and contingencies associated with
MPLX; the ability to attract and retain key personnel; prevailing market
conditions; changes in the economic and financial conditions of MWE and
MPLX; uncertainties and matters beyond the control of management; and
the other risks discussed in the periodic reports filed with the SEC,
including MWE’s and MPLX’s Annual Reports on Form 10-K for the year
ended December 31, 2014 and MWE’s Report on Form 10-Q for the quarter
ended September 30, 2015. These risks, as well as other risks associated
with MWE, MPLX and the proposed transaction are also more fully
discussed in the proxy statement and prospectus included in the
registration statement on Form S-4 filed with the SEC by MPLX and
declared effective by the SEC on October 29, 2015 and the supplement to
the proxy statement/prospectus dated November 17, 2015. MWE has mailed
the proxy statement/prospectus to its unitholders. The forward-looking
statements should be considered in light of all these factors. In
addition, other risks and uncertainties not presently known to MWE or
MPLX or that MWE or MPLX considers immaterial could affect the accuracy
of the forward-looking statements. The reader is cautioned not to rely
unduly on these forward-looking statements. MWE and MPLX do not
undertake any duty to update any forward-looking statement except as
required by law.
Additional Information and Where to Find It
In connection with the proposed acquisition, MWE and MPLX have filed
relevant materials with the SEC, including MPLX’s registration statement
on Form S-4 that includes a definitive joint proxy statement and a
prospectus and was declared effective by the SEC on October 29, 2015 and
a supplement to the proxy statement/prospectus dated November 17, 2015.
Investors and security holders are urged to read all relevant documents
filed with the SEC, including the definitive joint proxy statement and
prospectus, because they contain important information about the
proposed transaction. Investors and security holders are able to obtain
the documents free of charge at the SEC’s website, http://www.sec.gov,
or for free from MPLX LP at its website, http://ir.mplx.com,
or in writing at 200 E. Hardin Street, Findlay, Ohio 45840, Attention:
Corporate Secretary, or for free from MWE by contacting Investor
Relations by phone at 1-(866) 858-0482 or by email at investorrelations@markwest.com.
Participants in the Solicitation
MPLX and MWE and their respective directors and executive officers and
certain employees may be deemed to be participants in the solicitation
of proxies from the holders of MWE common units with respect to the
proposed transaction. Information about MPLX’s directors and executive
officers is available in MPLX’s Annual Report on Form 10-K filed with
the SEC on February 27, 2015 and MPLX’s current report on Form 8-K, as
filed with the SEC on March 9, 2015. Information about MWE’s directors
and executive officers is set forth in the proxy statement for MWE’s
2015 Annual Meeting of Common Unitholders, which was filed with the SEC
on April 23, 2015 and MWE’s current reports on Form 8-K, as filed with
the SEC on May 5, 2015, May 19, 2015 and June 8, 2015, and in the
definitive joint proxy statement filed by MPLX, which was declared
effective by the SEC on October 29, 2015, and the supplement to the
proxy statement/prospectus dated November 17, 2015. To the extent
holdings of MWE securities have changed since the amounts contained in
the definitive joint proxy statement filed by MPLX, which was declared
effective by the SEC on October 29, 2015, and the supplement to the
proxy statement/prospectus dated November 17, 2015, such changes have
been or will be reflected on Statements of Change in Ownership on Form 4
filed with the SEC. Investors may obtain additional information
regarding the interest of such participants by reading the definitive
joint proxy statement and prospectus regarding the acquisition. These
documents may be obtained free of charge from the SEC’s website http://www.sec.gov,
or from MWE and MPLX using the contact information above.
Non-Solicitation
This communication shall not constitute an offer to sell or the
solicitation of an offer to sell or the solicitation of an offer to buy
any securities, nor shall there be any sale of securities in any
jurisdiction in which such offer, solicitation or sale would be unlawful
prior to registration or qualification under the securities laws of any
such jurisdiction. No offer of securities shall be made except by means
of a prospectus meeting the requirements of Section 10 of the Securities
Act of 1933, as amended.
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