Energy News / Shareholders Foundation, Inc.

NYSE:SXE Investor Alert: Lawsuit Filed Against Acquisition of Southcross Energy Partners LP

Via: ReleaseWire

Updated 11:30 AM CST, Wed, January 31,2018

A lawsuit was filed for investors in units of Southcross Energy Partners LP (NYSE:SXE) in connection with the proposed takeover and NYSE:SXE unitholders should contact the Shareholders Foundation.

San Diego, CA -- (SBWIRE) -- 01/31/2018 -- The Shareholders Foundation announces that an investor, who currently holds units of Southcross Energy Partners LP (NYSE:SXE), filed a lawsuit against the takeover of Southcross Energy Partners LP by American Midstream Partners, LP.

Investors who purchased units of Southcross Energy Partners LP (NYSE:SXE) have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

The plaintiff alleges that the defendants breached their fiduciary duties owed to NYSE:SXE stockholders by agreeing to sell Southcross Energy Partners LP cheaply via an unfair process.

On November 01, 2017, Southcross Energy Partners, L.P. (NYSE:SXE) announced that it has signed an agreement with American Midstream Partners, LP (NYSE:AMID) whereby American Midstream Partners, LP has proposed to merge Southcross Energy Partners LP (NYSE:SXE into a wholly owned subsidiary of American Midstream Partners, LP and that Southcross Holdings, LP (collectively, withSouthcross Energy Partners LP referred to as "Southcross") has entered into a separate agreement with American Midstream Partners, LP whereby American Midstream Partners, LP will acquire certain assets of Southcross Holdings. The two separate transactions are valued in the aggregate at approximately $815 million, including the repayment of net debt. Under the terms of the proposed transaction public unitholders of Southcross Energy Partners LP (NYSE:SXE) will receive 0.160 American Midstream Partners, LP (NYSE:AMID) common units for each SXE common unit in a unit-for-unit merger. Based on a closing price of $13.55 per NYSE:AMID unit on October 31, 2017, NYSE:SXE untiholders will receive a value of approximately $2.17 per NYSE:SXE unit.

However, plaintiff claims that the proposed consideration NYSE:SXE unitholders will receive is grossly inadequate and undervalues Southcross Energy Partners LP. Indeed, at least one analyst has set the high target price for NYSE:SXE units at $2.75 per unit, the investigation concerns whether the offer is unfair to NYSE:SXE unitholders.In addition, the plaintiff alleges that the process is also unfair to NYSE:SXE unitholders.

Those who are current investors in Southcross Energy Partners LP (NYSE:SXE) units have certain options and should contact the Shareholders Foundation.

Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com

For more information on this press release visit:
http://www.sbwire.com/press-releases/nysesxe-investor-alert-lawsuit-filed-against-acquisition-of-southcross-energy-partners-lp-924639.htm

Media Relations Contact
Michael Daniels
858-779-1554
Email: Click to Email Michael Daniels
Web: http://www.ShareholdersFoundation.com