LS Power proposes taking EVgo private at $2 per share
The majority shareholder, which already controls about 56% of the US fast charging operator’s voting power, made the unsolicited, non-binding offer, now under review by a special committee.
EVgo has received an unsolicited and non-binding proposal from LS Power to acquire all of its outstanding Class A common stock not already owned by the investor, for $2.00 per share in cash. LS Power currently holds about 56% of EVgo’s combined voting power.
EVgo’s board has formed a special committee of independent, disinterested directors to review the proposal, with the authority to hire legal, financial and other advisors. “No decisions have been made with respect to EVgo’s response to the Proposal,” the company said, adding that shareholders do not need to take any action at this time.
The charging operator also noted that there is no assurance a definitive agreement will be reached or a transaction completed. Its shares rose 45% in premarket trading to $1.83 following the announcement, as reported by Grafa. The stock had fallen almost 57% since the start of the year.
EVgo operates more than 1,200 fast charging locations across 47 US states.
