HF Sinclair Submits Non-binding Proposal to Acquire Holly Energy
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HF Sinclair Corporation has submitted a non-binding proposal to acquire all of the outstanding common units of Holly Energy Partners (HEP) not beneficially owned by HF Sinclair or its affiliates in exchange for common stock, par value $0.01 per share, of HF Sinclair.
Under the proposal, HF Sinclair proposes to effect the transaction at a fixed exchange ratio of 0.3714 newly issued shares of common stock per each publicly held common unit, which was derived using the 30-day volume weighted average prices for each security as of market close on May 3, 2023.
The proposal has been made to the board of directors of the ultimate general partner of HEP. The proposed HEP transaction is subject to the negotiation and execution of a definitive agreement.
Holly Energy Partners confirmed it has received the proposal letter.
The proposal has been made to HEP’s board of directors. It is anticipated that the board will authorize the Conflicts Committee of the board, which is comprised of independent members of the board, to review, evaluate and negotiate the proposed HF Sinclair transaction. The proposed HF Sinclair transaction is subject to the negotiation and execution of a definitive agreement. There can be no assurance that a definitive agreement will be executed or that any transaction will be approved or consummated.
HF Sinclair Corporation, headquartered in Dallas, Texas, is an independent energy company that produces and markets high-value light products such as gasoline, diesel fuel, jet fuel, renewable diesel and other specialty products. HF Sinclair owns and operates refineries located in Kansas, Oklahoma, New Mexico, Wyoming, Washington and Utah and markets its refined products principally in the Southwest U.S., the Rocky Mountains extending into the Pacific Northwest and in other neighboring Plains states. HF Sinclair supplies high-quality fuels to more than 1,500 branded stations and licenses the use of the Sinclair brand at more than 300 additional locations throughout the country. In addition, subsidiaries of HF Sinclair produce and market base oils and other specialized lubricants in the U.S., Canada and the Netherlands, and export products to more than 80 countries. Through its subsidiaries, HF Sinclair produces renewable diesel at two of its facilities in Wyoming and also at its facility in Artesia, New Mexico. HF Sinclair also owns a 47% limited partner interest and a non-economic general partner interest in Holly Energy Partners, L.P., a master limited partnership that provides petroleum product and crude oil transportation, terminalling, storage and throughput services to the petroleum industry, including HF Sinclair subsidiaries.
Holly Energy Partners, headquartered in Dallas, Texas, provides petroleum product and crude oil transportation, terminalling, storage and throughput services to the petroleum industry, including subsidiaries of HF Sinclair Corporation. HEP, through its subsidiaries and joint ventures, owns and/or operates petroleum product and crude pipelines, tankage and terminals in Colorado, Idaho, Iowa, Kansas, Missouri, Nevada, New Mexico, Oklahoma, Texas, Utah, Washington, and Wyoming, as well as refinery processing units in Kansas and Utah.
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