WGL acquisition may not be in the best interests of its shareholders
Published by Stephanie Roker,
Editor
World Pipelines,
WeissLaw LLP is investigating possible breaches of fiduciary duty and other violations of law by the Board of Directors of WGL Holdings, Inc. (WGL) in connection with the proposed acquisition of WGL by Canadian corporation AltaGas Ltd. (AltaGas). Under the terms of the agreement, WGL shareholders will receive US$88.25 in cash for each WGL share they own.
WeissLaw is investigating whether WGL's Board acted to maximise shareholder value prior to entering into the agreement. Notably, the offer price represents a mere 12% premium over WGL's closing price prior to announcement of the acquisition. Additionally, the acquisition, which has been unanimously approved by the Board of Directors of WGL, is a strategic transaction which heavily favours the interests of AltaGas and its shareholders at the expense of WGL's shareholders. According to AltaGas's CEO, the transaction "is highly transformational … increasing both the scale and breadth of [AltaGas'] quality assets."
WGL is a multi-jurisdictional energy company with significant exposure in the midstream sector, and substantial investments in various American pipelines, including pipelines in the Marcellus and Utica basins, which the Canadian corporation hopes will diversify its midstream business. Finally, the acquisition increases AltaGas's market share, solidifying its position as a leading North American energy infrastructure company.
Read the article online at: https://www.worldpipelines.com/business-news/08022017/wgl-acquisition-may-not-be-in-the-best-interests-of-its-shareholders/
You might also like
World Pipelines Podcast: Going global with IPLOCA
In this episode, Elizabeth Corner speaks to Georges Hage, Executive Secretary at IPLOCA, about IPLOCA's insights on the culture and characteristics of the pipeline contractor community, and how it works to support sustainable energy infrastructure.
Construction begins on Greensand’s carbon dioxide transit terminal at Port Esbjerg
When the tanks are full, the liquefied carbon dioxide will be loaded onto a dedicated carrier from Royal Wagenborg and shipped to the INEOS Nini platform in the Danish North Sea. From there, it will be safely injected via pipeline into subsurface reservoirs approximately 1800 m beneath the seabed for permanent storage.
