MarkWest to pay $241 million in cash in deal with MarkWest Hydrocarbon

By Lisa Kerner

Charlotte, N.C., Feb. 26 - MarkWest Energy Partners, LP said it will pay merger consideration of some $241 million in cash and will issue approximately 15.5 million common units of MarkWest Energy in its proposed merger with MarkWest Hydrocarbon, Inc.

Disbursement of the cash and common units will begin on Wednesday.

Final results of the merger consideration election show that 54% of MarkWest Hydrocarbon shareholders elected to receive the stated consideration of 1.285 common units of MarkWest Energy plus $20 cash per share.

Another 15% of MarkWest Hydrocarbon shareholders chose to receive cash in the amount of $61.44 per share, while 25% chose all common units and will receive 1.9051 units of MarkWest Energy per share.

Some 6% of MarkWest Hydrocarbon shareholders failed to make an election and will receive, on a per-share basis, roughly 1.8325 common units and cash of about $2.34.

Cash will be paid in lieu of fractional shares, according to a company news release.

As previously reported in September, MarkWest Energy and MarkWest Hydrocarbon agreed to a merger valued at $734 million.

MarkWest Energy is a Denver-based publicly traded limited partnership and processor of natural gas in the Northeast.

MarkWest Hydrocarbon, a natural gas marketer, controls and operates MarkWest Energy.

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