A lawsuit was filed for investors in shares of Rentech Nitrogen Partners LP (NYSE:RNF) in connection with the proposed takeover was announced.
San Diego, CA -- (SBWIRE) -- 11/30/2015 -- A unitholder in NYSE:RNF shares filed a lawsuit against the takeover of Rentech Nitrogen Partners LP by CVR Partners, LP.
On August 10, 2015, CVR Partners, LP and Rentech Nitrogen Partners LP (NYSE:RNF) announced the execution of a merger agreement under which CVR Partners will acquire all outstanding units of Rentech Nitrogen Partners LP.
Investors who purchased shares of Rentech Nitrogen Partners LP (NYSE:RNF) and currently hold any of those NYSE:RNF shares have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call 858-779-1554.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NYSE:RNF stockholders by agreeing to sell Rentech Nitrogen Partners LP too cheaply via an unfair process to CVR Partners, LP.
Under the terms of the transaction, each outstanding common unit of Rentech Nitrogen Partners LP (NYSE:RNF) will be exchanged for 1.04 units of CVR Partners and $2.57 of cash. Based on a closing price of $10.38 per share on August 7, 2015 of CVR Partners LP units Rentech Nitrogen Partners LP (NYSE:RNF) unitholders will receive a value of approximately $13.37 per RNF unit.
However, the plaintiff claims that the proposed consideration NYSE:RNF shareholders will receive is grossly inadequate and undervalues Rentech Nitrogen Partners LP. Indeed, at least one analyst has set the high target price for NYSE:RNF units at $22.00 per unit. Furthermore, Rentech Nitrogen Partners LP reported that its annual Total Revenue rose from $199.91 million in 2011 to $334.61 million in 2014. Shares of Rentech Nitrogen Partners LP (NYSE:RNF) traded during 2013 as high as $47.89 per share. In addition, the plaintiff claims that the process is also unfair to NYSE:RNF stockholders.
On November 27, 2015, NYSE:RNF units closed at $10.61 per unit.
Those who are current investors in Rentech Nitrogen Partners LP (NYSE:RNF) shares have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com