LS Power, EVgo's majority shareholder, proposed paying $2 per share in cash to acquire all EVgo shares outside LS Power's holdings. The investment firm proposed a merger to purchase the remaining publicly held Class A shares. The transaction could make the electric vehicle charging company private. The proposal was disclosed on Monday through a Schedule 13D filing with the Securities and Exchange Commission.
The offer exceeds EVgo's October 30 closing price by 59%. The offer also exceeds EVgo's 30-day volume-weighted average price by 62%. LS Power Equity Advisors and affiliates own approximately 178 million shares across Class A and Class B. Those holdings account for about 56% of EVgo's outstanding voting securities. The proposed transaction could result in EVgo removing Class A shares from the Nasdaq Global Select Market.
LS Power said the firm does not want to sell the existing holdings or participate in another transaction that changes control of EVgo. LS Power expects EVgo's board to appoint independent directors to a special committee that would assess the proposal. LS Power said the firm would proceed only if that committee recommends the transaction to the board, with advice from independent legal and financial advisers. LS Power said the proposal creates no binding commitment and can be changed or withdrawn at any time. The parties have not signed a definitive agreement, and a completed transaction is not assured. However, LS Power said the firm was ready to begin negotiations immediately and finalize an agreement.
EVgo shares surged on Monday following the buyout proposal. Benzinga Pro data showed a 46.96% gain to $1.85 at publication on Monday. Trading volume reached approximately 58.56 million shares, against a 100-day average of 3.67 million shares. That volume was nearly 16 times normal daily activity, indicating increased investor interest after the proposal. The cash offer gives investors a potential valuation reference of $2 per share, although the transaction still requires review and approval.
EVgo Stock Surges After Buyout Proposal from Majority Shareholder LS Power
BenzingaShare
Summary
EVgo shares jumped 46.96% to $1.85 on Monday as trading volume hit 58.56 million, nearly 16 times the 100-day average. LS Power, which owns 56% of EVgo, proposed a $2-per-share buyout in a Schedule 13D filing. The offer, subject to board review, could take the company private. Altcoins to watch may see ripple effects from such high-profile trading volume moves.
Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.
Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.