The Wall Street Journal: Canada’s AltaGas in $6.4 billion deal to buy Washington D.C. utility WGL
Canada’s AltaGas Ltd. reached a $ 6.4 billion deal to buy WGL Holdings Inc., Washington, D.C.’s natural-gas utility, more than tripling its customer base.
The price — based on $ 88.25 a share, a 12% premium over Wednesday’s closing — is above the range The Wall Street Journal had reported this month, citing people familiar with the matter. The deal, subject regulatory and WGL shareholders’ approval, is expected to close by the end of the second quarter of 2018.
WGL WGL, -0.23% , which will continue to operate as a stand-alone utility based in the U.S., runs Washington Gas, the former Washington Gas Light. Co., founded by a congressional charter in 1848 and that currently serves more than 1 million customers in the D.C. metropolitan area.
Calgary-based AltaGas ALA, +0.57% secured a $ 4.95 billion bridge loan from J.P. Morgan Chase Bank, Toronto-Dominion Bank, and Royal Bank of Canada. WGL’s stock, up 26% over the past 12 months, rose 3.4% to $ 81.49 in after-hours trading.
An expanded version of this report appears on WSJ.com.
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