On August 13, 2020, Delek US Holdings, Inc. (NYSE: DK) (“Delek US”) and Delek Logistics Partners, LP (NYSE: DKL) (“Delek Logistics”) announced the execution and closing of a definitive agreement to eliminate all of the incentive distribution rights (IDRs) in Delek Logistics held by its general partner and convert its 2.0% economic general partner interest into a non-economic general partner interest in exchange for 14 million newly issued DKL common limited partner units and $45 million in cash. The newly issued DKL common limited partner units have a total equity value of approximately $484 million based on the DKL common limited partner units closing price of $34.59 on August 12, 2020, or $442 million based on a 10-day volume weighted average price of $31.56.
The transaction was approved by the Conflicts Committee of Delek Logistics’ general partner, which is comprised solely of independent directors.
Baker Botts L.L.P. represented Delek US in the transaction.
Baker Botts Lawyers/Office Involved:
For more information, please see Delek’s news release by clicking here.
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