Martin Midstream Partners shareholders Nut Tree and Caspian to oppose sale

Martin Midstream Partners (MMLP), or MMLP, shareholders Nut Tree Capital and Caspian Capital intend to oppose the proposed sale of Martin Midstream Partners to Martin Resource Management, or MRMC, an affiliate of the company’s general partner, for $4.02 per MMLP common unit not already owned by MRMC. Nut Tree and Caspian have combined economic exposure in the company of approximately 13.2% of the outstanding common units through certain cash-settled derivative agreements. Nut Tree and Caspian stated that they believe that “the proposed sale price significantly undervalues the company and its prospects, and that if the merger is completed on its current terms, MRMC will receive significant upside for itself that rightfully belongs to all MMLP unitholders”. Nut Tree and Caspian intend to file a proxy statement with the SEC and solicit votes “against” the proposed transaction at the company’s upcoming special meeting to be held to approve the related merger agreement. Both shareholder companies believe that the Conflicts Committee of the board did not fully explore potentially superior alternatives to the sale to MRMC.