Southcross Energy Partners, L.P. (NYSE: SXE) announced that, effective July 29, 2018, it has terminated the previously announced agreement and plan of merger, dated as of October 31, 2017, with American Midstream Partners, LP (NYSE:AMID) whereby AMID had proposed to merge Southcross Energy into a wholly owned subsidiary of AMID. Consistent with its rights and obligations under the merger agreement, Southcross Energy provided written notice terminating the merger due to AMID’s failure to achieve conditions required under the merger agreement. In addition, effective July 29, 2018, Southcross Energy’s parent, Southcross Holdings LP has terminated the previously announced Contribution Agreement, dated as of October 31, 2017, with AMID as a result of a funding failure by AMID. Under the terms of the Contribution Agreement, Southcross Holdings is entitled to receive a $17 million termination fee, a portion of which will be used to reimburse certain of Southcross Energy’s transaction costs.
Southcross Energy and Southcross Holdings do not anticipate any adverse impacts to our customers, suppliers and employees as a result of the termination of these agreements.
The combined Boards of Directors of Southcross Energy and Southcross Holdings voted unanimously to approve these actions, which we believe enhance our ability to capitalize on the improving commercial environment across key areas of our asset base.
