Deals
AltaGas Plans Canadian IPO in Shift to U.S. After WGL Deal
- Offering and debt repayment to raise C$1 billion in cash
- Move follows U.S. takeover spree by Canadian utility companies
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AltaGas Ltd. is intensifying its shift toward the U.S., following up its $4.6 billion takeover of Washington utility WGL Holdings Inc. with a plan to spin off its Canadian assets through an initial public offering.
The IPO and a debt repayment from the new company would deliver C$1 billion ($770 million) in cash proceeds to AltaGas, which plans to use the money to repay a loan it took on to fund the WGL acquisition, according to a statement Thursday. The transaction would leave AltaGas focused on natural gas and U.S. utilities, while AltaGas Canada Inc. would own Canadian gas distribution and wind power assets.