AltaGas to buy WGL Holdings in $8.4B takeover

Deal includes the assumption of approximately $2.4 billion of debt.

January 26, 2017   by CP Staff

CALGARY — AltaGas Ltd. is buying US power and utility company WGL Holdings Inc. in a deal worth C$8.4-billion as it looks to expand and diversify its energy infrastructure portfolio in North America.

To pay for the deal, the Calgary-based company has also announced $2.5 billion in financing, and plans to offer debt, preferred shares and some asset sales.

Washington, DC-based WGL Holdings owns extensive pipeline and midstream energy assets that AltaGas says is complimentary to its own network.

WGL is also the parent company of natural-gas utility Washington Gas, which supplies the US capital region, and owns clean power assets and natural gas generation facilities in the US.

Under the terms of the agreement, WGL shareholders would receive US$88.25 in cash per WGL share, which represents an 11.8% premium to WGL’s closing share price on Tuesday.

AltaGas says the transaction represents a total value of $8.4 billion, including the assumption of approximately $2.4 billion of debt.

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