My Letter to Blueknight Energy Partners Board of Directors
This letter was sent 10/18/2021 and was in response to Ergon’s proposal to purchase all Blueknight Energy common partnership units at $3.32/share and preferred units at $8.46/share. Their proposal can be found here (link to sec filing).
In my view, this offer woefully undervalues the common units and the entire business on an enterprise value basis. The Conflicts Committee previously blocked an earlier effort to “rob” common unitholders. As such, I believe there is good grounds to believe they will act ethically in fulfilling their duties and reject this absurd offer.
A recent lawsuit win by Boardwalk energy shareholders against their general partner puts decisionmakers here on notice that value expropriation schemes will not be tolerated.