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Gas Natural Inc. (NYSEMKT:EGAS) Confirms Rejection of Takeover Offers by Algonquin Power & Utilities

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By on Energy & Solar

Gas Natural Inc. (NYSEMKT:EGAS) shares rose in Monday’s pre-market session, after the natural-gas distributor confirmed that it rejected unsolicited takeover offers made by Algonquin Power & Utilities (AQN.TO) in January, March and May of this year, deeming them inadequate.

EGAS was up 6.5% at $11.85 in recent pre-market trading, in a 52-week range of $7.49 to $12.57.

It said Algonquin had proposed to acquire all of the outstanding shares of the company for $10, a 20% premium of the then stock price (approximately $12), and $13, respectively. “After careful consideration and consultation with its financial and legal advisors, the independent directors, and the board as a whole unanimously determined the offers were not in the best interests of the shareholders and elected to reject each offer,” the company said in a Monday release.

The confirmation comes after The Wall Street Journal on Friday had reported that Algonquinapproached natural-gas distributor Gas Natural about a takeover three times this year, citing people familiar with the matter.

In its Monday statement, Gas Natural said its board is “not actively engaged, nor plans to be, in a process to sell the company,” adding it “will evaluate any legitimate offer to determine if it delivers value to the company’s shareholders greater than that which the board believes can be realized with the execution of Gas Natural’s growth strategy.”

W. Gene Argo, chairman of the board of Gas Natural, said the board “was unanimous in its belief that the offers made by Algonquin undervalued the potential of the company and were not in the best interests of all of our shareholders. The board also believes that under the management of both our newly appointed CEO and CFO, we have the leadership the company needs to advance our strategy and drive quality, sustainable earnings power and growth.”

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