Blog Exposure - AltaGas and WGL Holdings Signed Settlement Agreement on Key Terms for the Merger
Stock Monitor: AmeriGas Partners Post Earnings Reporting
LONDON, UK / ACCESSWIRE / December 06, 2017 / Active-Investors issued a free report on WGL Holdings, Inc. (NYSE: WGL), which is readily accessible upon registration at www.active-investors.com/registration-sg/?symbol=WGL as the Company's latest news hit the wire. On December 04, 2017, AltaGas Ltd and WGL Holdings announced that they have signed a settlement agreement with the Maryland Energy Administration (MEA), Montgomery County, Prince George's County, and the Laborers' International Union of North America (LiUNA) on key terms for the merger of AltaGas and WGL, before the Maryland Public Service Commission (PSC). The settlement is subject to review and approval by the PSC. Sign up now for our free research reports at:
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Active-Investors.com is currently working on the research report for AmeriGas Partners, L.P. (NYSE: APU), which also belongs to the Utilities sector as the Company WGL Holdings. Do not miss out and become a member today for free to access this upcoming report at:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, WGL Holdings most recent news is on our radar and we have decided to include it on our blog post. Today's free coverage is available at:
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Terms of Settlement Agreement
Both the companies have contributed $103 million for expanding natural gas infrastructure in Maryland. Of this amount, Washington Gas will invest $70 million over a 10-year period. The purpose is to further extend natural gas service to unserved and underserved areas by adding to regulated assets within the Company's service territory in Maryland. The remaining amount will be used to establish the Maryland Gas Expansion Fund, which will be administered by the MEA to promote economic development, job creation, and the expansion of natural gas infrastructure in Maryland.
Additionally, as part of the agreement, customers will receive a one-time rate credit, low-income customers will receive assistance with energy efficiency initiatives. The companies intend to make more investment in workforce and educational development. They are opting renewable energy development initiatives to support clean energy goals in Maryland. The transaction is expected to close in the first half of 2018. The head office of the AltaGas US power business will be relocated to Prince George's County, Maryland.
Post-Merger WGL Holdings to be in a Stronger Position to Deliver More Value to Customers
Terry D. McCallister, Chairman and CEO of WGL Holdings, Inc. and Washington Gas, stated that following the combination, Washington Gas will provide the same great service it has provided for nearly 170 years, and will have the added ability to grow, create more local jobs, and continue to provide safe, reliable ,and affordable energy solutions. He further added that the Company is proud of its long history of service to the region and believe that it will be in an even stronger position to deliver more value to our customers as part of the AltaGas family.
Merger Agreement Announced in January 2017
On January 26, 2017, the Boards of Directors of both companies unanimously approved a definitive agreement and plan of merger for WGL to be acquired by AltaGas in an all cash transaction for approximately $6.4 billion in cash. As per the agreement, WGL would maintain its utility headquarters in Washington D.C. and continue to manage its regulated utility business, while also assisting in the management of AltaGas' US regulated utility business. Including WGL, the new company would have its operations and assets in the United States and Canada.
WGL Holdings Received Shareholder Approval in May
On May 11, 2017, WGL Holdings' shareholders voted to approve the Company's plan to merge operations with AltaGas. The transaction was subject to certain closing conditions, including approvals from various other entities.
Other Approvals Received
The merger agreement was approved by the Federal Energy Regulatory Commission (FERC) on July 06, 2017, the Committee on Foreign Investment in the United States (CFIUS) on July 28, 2017, and the Virginia State Corporation Commission on October 20, 2017. AltaGas and WGL continue to work constructively with the District of Columbia Public Service Commission (DC PSC) and other parties involved in the regulatory proceedings. A final decision from the DC PSC on the combination is expected in the first half of 2018.
About WGL Holdings, Inc.
Founded in 1848, WGL Holdings, Inc. is a public utility holding company, selling and delivering natural gas, and providing energy-related products and services. It is the parent company of Washington Gas, WGL Energy, WGL Midstream, and Hampshire Gas, that provide energy-related services to residential and commercial customers, including government organizations. WGL Holdings is based in Washington, the District of Columbia.
Stock Performance Snapshot
December 05, 2017 - At Tuesday's closing bell, WGL Holdings' stock was marginally up 0.06%, ending the trading session at $85.25.
Volume traded for the day: 241.87 thousand shares.
Stock performance in the last three-month – up 1.15%; previous six-month period – up 2.67%; past twelve-month period – up 17.62%; and year-to-date - up 11.76%
After yesterday's close, WGL Holdings' market cap was at $4.37 billion.
Price to Earnings (P/E) ratio was at 22.78.
The stock has a dividend yield of 2.39%.
The stock is part of the Utilities sector, categorized under the Gas Utilities industry.
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