OMERS backs AltaGas’ $8.4B buy of Washington Gas Light

AltaGas Ltd. (TSX: ALA) has agreed to acquire WGL Holdings, Inc. (NYSE: WGL) in an all cash transaction valued at approximately CDN $8.4 billion.

WGL Holdings is a diversified energy infrastructure company which is the sole shareholder of Washington Gas Light Company, a regulated natural gas utility headquartered in Washington D.C.

Following the acquisition, AltaGas will have assets of approximately $22 billion. AltaGas will have natural gas rate base assets of $4.5 billion and over $7 billion of identified capital investment opportunities in highly attractive clean energy lines of business.

To fund the acquisition, AltaGas has entered into an agreement with a syndicate of underwriters led by TD Securities Inc., RBC Capital Markets and J.P. Morgan Securities Canada Inc. for a bought deal of subscription receipts for gross proceeds of approximately $2.1 billion.

Additionally, OMERS has agreed to subscribe subscription receipts, by way of a private placement, for gross proceeds to AltaGas of approximately $400 million, as part of $2.5 billion financing led the underwriters.

photo credit: WGL