AltaGas launches $8.4-billion takeover of U.S. energy association WGL Holdings

AltaGas Ltd. is shopping WGL Holdings Inc. for $6 billion in a latest Canadian blockbuster takeover of a U.S. appetite company.

“We are advantageous to be shopping a storied association with scarcely 170 years of history, that in many ways is scarcely a mirrored picture of AltaGas,” pronounced association arch executive David Harris on an researcher call Wednesday.

• AltaGas confirms talks after news of intensity $5B US partnership with WGL Holdings
• AltaGas formulation to build B.C.’s initial propane trade terminal

Harris pronounced a understanding would concede Calgary-based AltaGas to enhance a appetite infrastructure portfolio in North America, quite in a prolific Marcellus shale arrangement in northeastern U.S. as good as in purify power.

“This transaction is rarely transformative for a association by augmenting both a scale and extent of peculiarity assets, while progressing a corporate DNA,” pronounced Harris.

Washington, D.C.-based WGL Holdings was combined in 1848 as a Washington Gas Light Company and is now a primogenitor association of natural-gas application Washington Gas, that reserve a U.S. collateral region.

WGL also owns endless tube and midstream appetite resources as good as purify appetite plan and healthy gas era comforts in a U.S.

WGL keep office, staff

Under a deal, WGL Holdings will keep a U.S. bureau and staff, and AltaGas will immigrate a domicile of a U.S. appetite business to WGL’s service region.

This multi-billion-dollar takeover of an American association is only a latest vital incursion of Canadian companies down south.

Last March, TransCanada Corp. announced it was holding over a Columbia Pipeline Group for US$13 billion, while Enbridge Inc. concluded to a $37-billion takeover of Spectra Energy final Sep in what was a largest ever unfamiliar takeover by a Canadian company.

$8.4 billion value

In the AltaGas deal, WGL shareholders would accept US$88.25 in money per WGL share, that represents an 11.8 per cent reward to WGL’s closing share cost on Tuesday.

AltaGas also announced a $2.4-billion financing Wednesday to assistance compensate for a deal, and skeleton to after offer debt, elite shares and some item sales to assistance cover costs.

AltaGas says a transaction represents a sum value of $8.4 billion, including a arrogance of approximately $2.4 billion of debt.

Article source: http://www.cbc.ca/news/canada/calgary/altagas-takeover-wgl-holdings-1.3952336?cmp=rss