Alon Stockholders Say Yes to Delek US Merger
DALLAS — Alon USA Energy Inc. stockholders have given the go-ahead to the Delek US Holdings Inc. merger.
At a June 28 meeting, 99 percent of Delek shareholders approved the adoption of the previously disclosed merger agreement and transaction.
Under terms of the agreement, Delek will acquire all of the outstanding shares of Alon common stock that it does not already own in an all-stock transaction. Delek currently owns 47 percent of Alon.
As CSNews Online previously reported, Alon and Delek announced its proposed merger in October 2016.
“A combination with Delek would allow Alon stockholders to take part in a formidable combined company to weather the current downturn in the industry and emerge in a position of substantial strength as margins improve,” Delek Chairman and CEO Uzi Yemin wrote in an Oct. 14 letter that was disclosed in an U.S. Securities and Exchange filing. “When taken together, these factors collectively position a combined company to be a peer-leading enterprise in the refinery space for the long-term.”
In January 2017, Delek reached a definitive agreement to acquire the remaining 53 percent of Alon shares of common stock it does not already own. The all-stock transaction carries an equity value of $464 million.
The closing of the transaction is subject to Delek stockholders, who are set to meet June 29. Alon expects the transaction to close effective as of July 1.
Dallas-based Alon is an independent refiner and marketer of petroleum products, operating primarily in the South Central, Southwestern and Western regions of the United States. Alon owns 100 percent of the general partner and 81.6 percent of the limited partner interests in Alon USA Partners LP. Alon is the largest 7-Eleven licensee in the United States and operates approximately 300 convenience stores, which also markets motor fuels in Central and West Texas and New Mexico.
Headquartered in Brentwood, Tenn., Delek is a diversified downstream energy company with assets in petroleum refining and logistics. Delek and its affiliates also own approximately 63 percent of Delek Logistics Partners LP.