SHLX - Shell Midstream investors say takeover offer is too cheap - Bloomberg

Shell Midstream Partners (NYSE:SHLX) investor say parent company Shell (NYSE:SHEL) is low-balling them with a $12.89/unit takeover offer, Bloomberg reports, noting that units currently trade ~8% above the offer, indicating investors expect Shell will raise it. Shell's (SHEL) offer is "substantially below its intrinsic value," Joshua Nahas, who holds the stock through his fund Wolf Capital Advisors, told Bloomberg, as the "rock-bottom" offer price values units at nearly half of what they were worth in January 2020 despite oil prices doubling since then. Given that Shell (SHEL) seems concerned with ESG, fair value for Shell Midstream (SHLX) looks closer to $20/unit, said Brian Gaines, whose Springhouse Capital holds SHLX units. A Shell Midstream (SHLX) conflicts committee is negotiating a final price with Shell (SHEL), but Gaines and Nahas say the panel is beholden to the parent company, given the board was nominated by Shell. The committee also is working with

For further details see:

Shell Midstream investors say takeover offer is too cheap - Bloomberg