Summary
ONEOK, Inc. (OKE) announced in this 8-K filing dated August 5, 2003, that its significant shareholder, Westar Energy, Inc., has priced a secondary offering of OKE common stock. Westar is offering 9.5 million shares at $19.00 per share, generating approximately $180.5 million in gross proceeds for Westar. Notably, ONEOK will not receive any proceeds from this offering. However, a key transaction for ONEOK shareholders is that the company will use a portion of the proceeds received by Westar to repurchase $50 million worth of its own common stock from Westar. This repurchase amounts to approximately 2.6 million shares at the same $19.00 per share offering price. Following these transactions, Westar's ownership stake in ONEOK is expected to decrease to approximately 15% of the outstanding shares, assuming the conversion of all remaining preferred stock held by Westar.
Key Highlights
- 1Westar Energy, Inc. is conducting a secondary offering of 9.5 million OKE common shares at $19.00 per share.
- 2ONEOK, Inc. will not receive any proceeds from Westar's share offering.
- 3ONEOK will repurchase approximately 2.6 million shares of its common stock from Westar for $50 million at $19.00 per share.
- 4The share repurchase by ONEOK is contingent on Westar receiving over $150 million from its offering.
- 5Westar's beneficial ownership of ONEOK stock is expected to be around 15% after the transactions.
- 6The offering includes shares issuable from Westar's conversion of OKE's Series D Convertible Preferred Stock.