Robbins LLP: Acquisition of JP Energy Partners LP (JPEP) by American Midstream Partners, LP (AMID) May Not Be in Unitholders’ Best Interests
Robbins LLP is investigating the proposed acquisition of JP Energy Partners LP (NYSE: JPEP) by American Midstream Partners, LP (NYSE: AMID). On October 24, 2016, the two companies announced the signing of a definitive merger agreement pursuant to which American Midstream will combine with JP Energy Partners. Under the terms of the agreement, JP Energy Partners unitholders will receive 0.5775 units of American Midstream with a value of $8.63 for each common unit of JP Energy Partners.
Is the Proposed Acquisition Best for JP Energy Partners and Its Unitholders?
Robbins LLP’s investigation focuses on whether the board of directors at JP Energy Partners is undertaking a fair process to obtain maximum value and adequately compensate its unitholders.
As an initial matter, the $8.63 merger consideration represents a premium of only 14.5% based on JP Energy Partners’ closing price on October 21, 2016. This premium is significantly below the average one day premium of nearly 122.69% for comparable transactions within the past three years. Further, the $8.63 merger consideration is significantly below the target price of $10.75 set by an analyst at D.A. Davidson & Co. on October 6, 2016. In the last three years, JP Energy Partners traded as high as $20.71 on October 2, 2014, and most recently traded above the merger consideration – at $8.82 – on August 9, 2016.
JP Energy Partners unitholders have the option to file a class action lawsuit to ensure the board of directors obtains the best possible price for unitholders and the disclosure of material information.
JP Energy Partners unitholders interested in information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.