Nut Tree Capital Management LP and Caspian Capital LP have reiterated their non-binding proposal to acquire Martin Midstream Partners L.P. (MMLP) for $4.00 per common unit in cash, as communicated in a letter to the Conflicts Committee of the Board of Martin Midstream Partners GP on Thursday. This proposal, originally made on June 21, 2024, reflects a 31 percent premium over Martin Resource Management Corp.'s (MRMC) offer of $3.05 per common unit from May 24, 2024, and a 23 percent increase over the closing price as of July 9, 2024.
Importantly, Nut Tree and Caspian have indicated that their offer is not contingent upon any financing conditions and will be funded through existing capital. Despite the significant premium, Jed Nussbaum, Chief Investment Officer of Nut Tree, and David Corleto, Partner at Caspian, expressed concerns that the Conflicts Committee has so far refused to engage in discussions about the proposal. They noted that the committee's decision to only engage if the General Partner supported the proposal is particularly unusual, referencing the close affiliations between MRMC, the General Partner, and MMLP.
