Energy Central Professional


Carl Icahn opposes Southwest Gas’ deal for Questar Pipelines

SeeNews Deals  


    October 6 (SeeNews) - Billionaire activist investor Carl Icahn on Tuesday disclosed a stake of 4.9% in Southwest Gas Holdings Inc (NYSE:SWX) and also expressed discontent with the US-based utility’s roughly USD-2-billion (EUR 1.72bn) agreement to acquire Questar Pipelines from local peer Dominion Energy Inc (NYSE:D).

    “The purchase will result in serious diminution of shareholder value,” Icahn said in a letter to the company’s board, adding that he was “extremely disappointed with management’s performance over the past few years.”

    The letter was sent shortly before the announcement on the deal on Tuesday, after a Reuters report about talks on a potential transaction.

    Shares in Southwest Gas closed 6.58% higher at USD 70.42, implying a market capitalisation of about USD 4 billion.

    Questar Pipelines consists of 2,160-miles regulated, long-term contracted, transportation and underground storage assets in Utah, Wyoming and Colorado, together with related services and processing entities.

    “This acquisition accelerates our energy transition strategy by strengthening our ability to provide affordable, low carbon energy to customers while positioning us to transport renewable natural gas, responsibly sourced gas, and eventually, hydrogen and CO2," Southwest Gas Holdings' CEO John Hester said in a statement announcing the deal.

    (USD 1 = EUR 0.864)


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