3-3-agw008-feature-younger_extraction_plant1

AltasGas Ltd. recently announced that they are currently entering into a definitive agreement and a plan for merging with WGL Holdings. According to the press release AltasGas released, it will be an all-cash transaction which will be at approximately $8.4 billion. The acquisition will help the company to position itself as a leading North American diversified energy infrastructure company.

AltasGas Ltd is a North American company that focuses on natural gas, power, and regulated utilities; while WGL is a Washington-based leader of clean, efficient, and diverse energy solutions. WGL is the sole shareholder of Washington Gas Light Company, a regulated gas utility headquarters in DC, it also owns a non-regulated contracted power and energy marketing businesses scattered in the United States. The acquisition positions AltaGas as the leader in the diversified energy market, with assets approximately at C$22 billion.

AltaGas’ CEO Sees Better Camaraderie with WGL

AltaGas’ CEO and President David Harris said, “We look forward to welcoming WGL employees and customers to AltaGas,” and “This acquisition provides us with a robust, complementary set of energy businesses that greatly increase our scale and diversity. Our first priority in making this successful is to continue serving WGL’s customers and communities with safe, reliable and affordable service and maintaining the strong relationships WGL has built with regulators.”

AltaGas sees a combined natural gas rate base assets of C$4.5 billion, while a total of C$7 billion on the identified capital investment opportunities identified through to 2021.

WGL Says AltaGas Is the Perfect Partner

On the other hand, WGL’s CEO Terry McCallister believes that their leadership team and Board of Directors are certain that they found the perfect partner in AltaGas. They are also confident that together, a strong and diverse company will spring from new and exciting opportunities, and providing the greatest value of their stockholders in return. CEO McCallister noted that “This is a significant and positive event for WGL and all of its stakeholders — its employees, customers, and shareholders,”

shutterstock_545981989.jpg

Upon closing, AltaGas’ assets are valued around C$22 billion and the company is expected to have a combined growth portfolio of over C$ 7 billion in low-risk, investment opportunities evenly spread to its three business sectors till 2021. Both AltaGas and WLG own a complementary pipeline and midstream business in two of the most productive regions, the combined pipeline and midstream business are expected to lead the company’s growth in the near future.

Terry McCallister ended saying “We are proud of our company and are enthusiastic about the combination. Our focus at WGL has been creating value for our shareholders while at the same time providing superior service to our customers and to the communities we serve. This Transaction not only allows our shareholders to benefit from a substantial premium on their shares, but it also ensures our customers and communities will continue to receive the same great service we have provided for decades. AltaGas shares our values, including maintaining the strong working relationships we have developed with our regulatory agencies. The WGL team looks forward to contributing to AltaGas’ future and the opportunities for growth across the organization.”

Tired of being out-dated and being left behind on the latest financial and market news? Follow us at Options12 for the round-the-clock updates of news about online trading, forex, commodity, economies, and automobile. Don’t get left behind, subscribed now for you daily news updates and be informed!

Advertisements