SemGroup (SEMG) Alert: Johnson Fistel Investigates Proposed Sale of SemGroup Corporation; Are Shareholders Getting a Fair Deal?

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Sep 16, 2019, 09:48 ET

SAN DIEGO, Sept. 16, 2019 /PRNewswire/ -- Shareholder rights law firm Johnson Fistel, LLP has launched an investigation into whether the board members of SemGroup Corporation (NYSE: SEMG) ("SemGroup") breached their fiduciary duties in connection with the proposed sale of the Company to Energy Transfer LP.

On September 16, 2019, SemGroup announced that it had signed a definitive merger agreement with Energy Transfer LP. Under the terms of the deal, SemGroup shareholders will receive $6.80 per share in cash and 0.7275 of an Energy Transfer LP common unit for each SemGroup share, or approximately 40% cash and 60% equity. The transaction values SemGroup at $17.00 per share based on Energy Transfer LP September 13, 2019, closing price.

SemGroup shareholders will be subject to the future price fluctuation of Energy Transfer LP's stock price. Following the news, in pre-market trading on September 16, 2019, Energy Transfer LP was trading down over 3%.

The investigation concerns whether the SemGroup board failed to satisfy its duties to the Company shareholders, including whether the board adequately pursued alternatives to the acquisition and whether the board obtained the best price possible for SemGroup shares of common stock. Nationally recognized Johnson Fistel is investigating whether the proposed deal represents adequate consideration, especially given analysts' projections for future revenue growth. The 52-week high for SemGroup was $23.80.

If you are a shareholder of SemGroup and believe the proposed buyout price is too low or you're interested in learning more about the investigation or your legal rights and remedies, please contact lead analyst Jim Baker ([email protected]) at 619-814-4471. If emailing, please include a phone number.

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About Johnson Fistel, LLP:
Johnson Fistel, LLP is a nationally recognized shareholder rights law firm with offices in California, New York, and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit https://www.johnsonfistel.com. Attorney advertising. Past results do not guarantee future outcomes.

Contact:
Johnson Fistel, LLP
Jim Baker, 619-814-4471
[email protected]

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SOURCE Johnson Fistel, LLP