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/