Boston, MA 08/29/2014 (wallstreetpr) – Energy Transfer Equity LP (NYSE:ETE) has announced that Susser Holdings Corporation (NYSE:SUSS) stockholders are in favor of the proposed merger agreement between two firms. The merger received the approval of around 99% of shares, representing around 77% of total outstanding shares as of July 22, 2014 record date for the meeting.
The proposed merger
Energy Transfer Equity LP (NYSE:ETE) and Susser Holdings Corporation (NYSE:SUSS) announced and entered into a merger agreement on April 28, 2014. As per the proposed merger, Susser stockholders were said to select from the following options:
- 0.7253 of an ETP common unit combined with $40.125 in cash
- $80.25 in cash
- 1.4506 ETP common units, for each share of Susser, held prior to the merger.
Now with the stockholder approval and all the closing conditions met, the merger is expected to close on August 29, 2014.
The profile of Susser
Susser business operates more than 640 convenience stores in New Mexico, Oklahoma and Texas. The 595 stores operate under Stripes® banner and rest of convenience stores under the Sac-N-Pac banner. It provides the restaurant service in 410 of its stores, available under the proprietary Laredo Taco Company® brand. It has got a majority stake in Susser Petroleum Partners LP (NYSE:SUSP). It is a significant stake in a company that distributes around 1.7 billion gallons of motor fuel annually to various stores and fuel outlets spread in New Mexico, Oklahoma, Texas, Louisiana and Kansas.
Significance of merger
Susser doesn’t have any more opportunities to expand its operations after it spun off its distribution business. With the proposed merger, Energy Transfer Equity LP (NYSE:ETE) will be able to spin out the retail marketing business. It will use the Susser stake in Susser Petroleum Partners to reach its objective. It will benefit from the Susser Holdings Corporation (NYSE:SUSS)’s operations spread in Texas locations. Also, the unique business model of Susser that focuses on operating restaurants will add to the performance of Energy Transfer in coming quarters.
