Meridiam takes full hold of Allego with delisting and fresh capital
The agreement stipulates that Meridiam will acquire the remaining shares in Allego, and provide 310 million euros for the company’s growth. Allego will be delisted from the New York Stock Exchange and Meridiam is to provide an additional 46 million euros for its charging network in Germany – An announcement published by both companies mentions Germany explicitly and no other country.
Meridiam already acquired a majority stake in Allego in 2018. In spring 2022, the Dutch company went public in New York via a SPAC merger. Since then, the company has been listed under the ticker symbols “ALLG” and “ALLG.WS”. This will soon come to an end after less than three years.
Meridiam and Allego now plan to de-list from the stock exchange as they believe that “the current listing does not allow the company to fully implement its growth plan”. The two companies have said that the “low trading liquidity and volatility of the market price of the shares on the NYSE, limited analyst coverage and the lack of capital available in public markets at competitive costs for electric vehicle charging station operators are clear impediments to Allego’s success today.”
Meridiam and Allego expect the delisting to give Allego “a broader range of more favourable options to finance its growth plan” and a “more efficient capital structure”. The favourable access to investment capital was once one of the reasons for the IPO.
Meridiam will offer all shareholders who do not belong to its own subsidiaries a takeover of the shares at 1.70 dollars each – a premium of 131 per cent on the closing price of Allego shares on June 14, which was 0.74 dollars. Shareholders who do not wish to sell their ordinary shares will then remain investors in the delisted company.
Allego emphasizes that neither the tender offer nor the closing of the other parts of the transaction is subject to any minimum number of shares of common stock and that the transaction is not subject to any financing or regulatory approval conditions.
“Since our initial investment in Allego in 2018, we have supported the Company along the way,” said Emmanuel Rotat, Director of Meridiam. We strongly believe that operating in a private context, with a continued support from Meridiam as majority shareholder of the Company, will ideally position Allego for its next phase of growth”.
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