Southern Company buying AGL Resources


Southern Company buying AGL Resources

Shares of AGL Resources Inc. surged almost 9% in premarket trade Monday, after Southern Co.  said it has agreed to buy AGL in a deal with an enterprise value of about $12 billion.

Southern Co. said it expects the deal to boost earnings per share in the first full year after the close, and to drive long-term EPS growth to 4% to 5%.

AGL will become a wholly owned unit of Southern Co., creating the second-biggest utility in the U.S. by customer base. AGL shareholders will receive $66 in cash for each share, a premium of 36.3% over the volume-weighted average stock price over the last 20 trading days through Aug. 21.

“We believe the addition of AGL Resources to our business will better position Southern Company to play offense in supporting America’s energy future through additional natural gas infrastructure,” Chief Executive Thomas Fanning said in a statement.


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