Morningstar - WGL Holdings Inc. (WGL) The Secret Is Out: AltaGas Premium Offer Is a Big Win for WGL Shareholders

Report

Morningstar

Travis Miller

EUR 147.86 For Business Accounts Only

The Secret Is Out: AltaGas' Premium Offer Is a Big Win for WGL Shareholders

We are raising our fair value estimate to $88 per share after Canadian utility AltaGas confirmed long-swirling rumors by announcing its offer to acquire WGL Holdings for $88.25 per share in cash.Â AltaGas' offer is a 45% premium to our $61 per share stand-alone fair value estimate for WGL and a 28% premium to WGL's stock price before news leaked in mid-January that acquirers were circling. We think this is an exceptional price for shareholders.Â Morningstar does not cover AltaGas.
In a note we pub...

26/01/2017 13 EN

Underlying

WGL Holdings Inc.

WGL Holdings is a holding company. Through its wholly owned subsidiaries, the company sells and delivers natural gas and provide energy-related products and services to customers. The company's segments include regulated utility, which is a regulated public utility that sells and delivers natural gas to retail customers; retail energy-marketing, which sells wind and other renewable energy credits and carbon offsets to retail customers; commercial energy systems, which focuses on energy efficient solutions for its customers; and midstream energy services, which focuses in the investment, management, development and optimization of natural gas storage and transportation midstream infrastructure projects.

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US92924F1066 United States

Provider

Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

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Analysts

Travis Miller

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The Secret Is Out: AltaGas' Premium Offer Is a Big Win for WGL Shareholders

WGL Holdings, Inc.: Update following downgrade to Baa1, negative

Moody's downgrades WGL Holdings to Baa1 and Washington Gas Light to A2; outlooks remain negative

AltaGas closes its cash acquisition of WGL Holdings.

Business as Usual for No-Moat Lonza; Specialty Ingredients Carve-Out on Track for 2020

Sasol Provides Full-Year Production Update

Astra Posts Solid 2Q, Driven by Strong Cancer Drug Sales and Moving Away From One-Time Divestments

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