Ademi LLP is investigating SHLX (NYSE: SHLX) for possible breaches of fiduciary duty and other violations of law in its transaction with Shell USA.
Ademi LLP alleges SHLX’s financial outlook and prospects are excellent and yet SHLX holders will receive only $15.85 per Public Common Unit in cash for a total value of approximately $1.96 billion. A subsidiary of Shell USA currently owns 269,457,304 SHLX common units, or approximately 68.5% of SHLX common units. The transaction agreement unreasonably limits competing bids for SHLX by imposing a significant penalty if SHLX accepts a superior bid. SHLX insiders will receive substantial benefits as part of change of control arrangements.
We are investigating the conduct of SHLX’s board of directors, and whether they are (i) fulfilling their fiduciary duties to all shareholders, and (ii) obtaining a fair and reasonable price for SHLX.