Ademi LLP is investigating EnLink (NYSE: ENLC) for possible breaches of fiduciary duty and other violations of law in its transaction with ONEOK.
In the transaction, the unitholders of EnLink will receive only 0.1412 shares of ONEOK common stock for each outstanding common unit of EnLink. The exchange ratio was derived by dividing $15.75 per unit, equal to EnLink’s market close price on Nov. 22, 2024, by ONEOK’s 10-day volume-weighted average price.
The transaction agreement unreasonably limits competing transactions for EnLink by imposing a significant penalty if EnLink accepts a competing bid. EnLink insiders will receive substantial benefits as part of change of control arrangements.
We are investigating the conduct of EnLink’s board of directors, and whether they are fulfilling their fiduciary duties to all unitholders.