EQT Buys Majority Stake in Waga Energy for $331 Million Ahead of Potential Takeover
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EQT is set to buy a majority stake in renewable natural gas producer Waga Energy ahead of a possible full takeover in a deal that values the company at 534.2 million euros ($611.4 million).
EQT said Friday that it has agreed to buy 54.1% of Waga for 21.55 euros a share. Based on this price, the stake would cost around 289 million euros and represents a 27% premium to Thursday’s closing price.
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Once the transaction is complete, EQT said it would file a mandatory cash offer to buy the remaining shares at the same price and delist the company. Waga’s board of directors has expressed initial unanimous support for EQT’s proposals, it said.
The price could rise by up to 2.15 euros a share depending on Waga’s ability to monetize U.S. investment tax credits on its projects in the country, EQT said.
Waga Energy produces renewable natural gas–or biomethane–from landfill gas and EQT said it hopes the tie-up would create a global leader in production.
Trading of Waga Energy’s shares was suspended in early morning European trading.
The deal is subject to regulatory approvals and EQT expects the acquisition of the shares to complete in the second half of the year.
Write to Adam Whittaker at adam.whittaker@wsj.com