Shares of UGI Corp (UGI) rallied Tuesday afternoon following a Wall Street Journal report detailing a takeover bid.
Private equity giant KKR & Co Inc (KKR) submitted an unsolicited proposal to acquire the natural gas and electricity distributor for roughly $9 billion, according to people familiar with the matter, cited by the Wall Street Journal.
The buyout offer values UGI at $42.50 per share. That price tag represents a premium of over 20% compared to the stock's Monday closing price of $35.09.
The Wall Street Journal highlighted that there are no guarantees UGI will accept the terms or that a final transaction will materialize. Private equity appetite for utility infrastructure has expanded rapidly, driven by rising power demand from data centers and energy grid needs.
UGI Price Action: UGI shares closed higher by 9.40% at $38.39 at the time of publication on Tuesday, according to market data.
