EVgo Inc. (NASDAQ:EVGO) stock surged Monday after its majority shareholder, LS Power, proposed acquiring all outstanding shares it does not already own for $2 per share in cash.
The proposed deal could take the electric vehicle charging company private.
The proposal, disclosed in a Schedule 13D filing with the Securities and Exchange Commission on Monday, represents a 59% premium to EVgo’s Oct. 30 closing price and a 62% premium to its 30-day volume-weighted average price.
LS Power Seeks Full Ownership of EVgo
LS Power Equity Advisors and its affiliates currently hold approximately 178 million Class A and Class B shares. The holdings represent about 56% of EVgo’s outstanding voting securities.
The investment firm has proposed acquiring the remaining publicly held Class A shares through a merger.
LS Power said it has no interest in selling its existing holdings or participating in an alternative change-of-control transaction involving EVgo.
The proposed deal could lead EVgo to delist its Class A shares from the Nasdaq Global Select Market.
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Independent Committee to Review Proposal
LS Power expects EVgo’s board to establish a special committee of independent directors to evaluate the offer.
The firm said it would proceed only if the committee, advised by independent legal and financial advisers, recommends the transaction to the board.
LS Power emphasized that the proposal is nonbinding and may be modified or withdrawn at any time.
No definitive agreement has been signed, and there is no guarantee a transaction will be completed.
However, the firm said it was prepared to move immediately to negotiate and finalize a deal.
EVGO Stock: Trading Volume Explodes
EVgo shares jumped Monday as investors reacted to the potential buyout.
Trading volume surged to approximately 58.56 million shares, compared with the stock’s 100-day average of 3.67 million shares.
That represents nearly 16 times its normal daily trading volume, highlighting heightened investor interest following the takeover proposal.
The proposed $2-per-share cash offer provides investors with a potential benchmark for the company’s valuation, although the transaction remains subject to review and approval.
EVGO Price Action: EVgo shares were up 46.96% at $1.85 at the time of publication on Monday, according to Benzinga Pro data.
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