San Diego, CA -- (SBWIRE) -- 06/09/2014 -- An investor, who currently holds shares of PetroLogistics LP (NYSE:PDH) filed a lawsuit in effort to halt the takeover of PetroLogistics LP by Flint Hills Resources, LLC, a subsidiary of Koch Industries, Inc.
Investors who purchased shares of PetroLogistics LP (NYSE:PDH) and currently hold any of those NYSE:PDH shares have certain options and should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NYSE:PDH stockholders by agreeing to sell PetroLogistics LP too cheaply via an unfair process to Flint Hills Resources, LLC, a subsidiary of Koch Industries, Inc.
On May 28, 2014, PetroLogistics LP (NYSE:PDH) announced that it and its general partner, PetroLogistics GP LLC, have entered into an agreement to be acquired by Flint Hills Resources, LLC, a subsidiary of Koch Industries, Inc. Under the terms of the acquisition agreement ("Merger Agreement"), Flint Hills Resources will acquire all of PetroLogistics'outstanding common units for $14.00 per common unit in cash, except for those common units owned by Lindsay Goldberg LLC ("Lindsay Goldberg"), York Capital Management ("York Capital"), PetroLogistics' Executive Chairman and its President and Chief Executive Officer, which will be acquired for $12.00 per common unit in cash.
However, the plaintiff claims that the $14-offer is too low and undervalues PetroLogistics LP. Indeed, at least one analyst has set the high target price for NYSE:PDH units at $17.00 per share. PetroLogistics LP reported that its annual Total Revenue rose from $750.65 million in 2012 to $757.49 million in 2013 and that its Net Loss of $56.67 million in 2012 turned into a Net Income of 175.04 million in 2013. Shares of PetroLogistics LP (NYSE:PDH) traded in 2013 as high as $16.17 per share and during 2012 as high as $17.00 per unit.
In addition, the plaintiff also alleges that the process is unfair to investors in NYSE:PDH units. Indeed, Lindsay Goldberg,York Capital,PetroLogistics' Executive Chairman and its President and Chief Executive Officer, owning common units representing, in the aggregate, approximately 73% of the outstanding common units, have already delivered a written consent approving the transaction and have entered into support agreements with Flint Hills Resources pursuant to which they have agreed to support the transaction until it is consummated or until the Merger Agreement is terminated and that no additional unitholder action is required to approve the transaction.
On June 6, 2014, NYSE:PDH shares closed at $14.39 per share.
Those who are current investors in PetroLogistics LP (NYSE:PDH) shares have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego