PetroLogistics Investor Seeks to Block Sale to Koch

A shareholder of propylene specialist PetroLogistics LP, set to be sold by private equity and its management to Koch Industries subsidiary Flint Hills, is seeking to block the $2.1 billion deal, calling it "unfair and inadequate."

Tom Klemesrud filed a complaint in the state of Delaware's Chancery Court, charging that the proposed buyout will discourage rival offers for the Houston-based company.

Under the plan announced at the end of May, PetroLogistics has until July 6 to talk with other potential bidders, provided Flint Hills is allowed by Koch to match any other offers.

A Flint Hills spokesman told US media that on the basis of due diligence, the company believes the deal to be fair, based on historic market values and the level of future investment that will be required to maintain and grow the business.

He pointed also to the majority shareholders' agreement to provide remaining shareholders with "additional consideration," adding that PetroLogistics' financial advisors have also deemed the $14.00 per unit sale price is fair to the shareholders.

Free Virtual Event

Vaccine Manufacturing
Bioprocess Forum

Vaccine Manufacturing

Join global experts and innovators for a two-day virtual event exploring the latest breakthroughs and best practices in vaccine manufacturing. Discover how new technologies and process innovations are shaping the future of vaccine production, safety, and scalability.

Interview

Specialty Chemicals in a Shifting World
Adapting to Tariffs and Strengthening Regional Networks

Specialty Chemicals in a Shifting World

Jennifer Abril, President & CEO of SOCMA, discusses the impact of new tariffs and the importance of regional supply networks in the specialty chemical industry.

most read

Photo
21.03.2025 • News

What’s Next for Pharma Supply Chains?

Sudden shifts in demand, supply shortages and global collapse have put immense pressure on pharmaceutical logistics. To address these challenges, PHARMAP 2025 brings together industry experts to discover AI-driven supply chain optimisation, strategic logistics partnerships and digital solutions that enhance efficiency and resilience in the pharmaceutical supply chain.