Southwest Gas Provides Update On Centuri; SWX Intends To Separate Centuri Through An Initial Public Offering
Portfolio Pulse from Benzinga Newsdesk
Southwest Gas Holdings, Inc. (NYSE:SWX) announced plans to pursue an IPO of Centuri Holdings in spring/summer 2024. The IPO aims to separate Centuri as an independent utility infrastructure services company, maximizing value for Southwest Gas shareholders. The IPO is subject to market conditions, SEC review, and Board approval. Proceeds will repay Centuri's debt, enhancing financial flexibility. Southwest Gas may reduce its Centuri ownership post-IPO through market sales or exchange offers, and has a $932.8 million NOL carryforward to offset potential taxable gains.
December 04, 2023 | 1:38 pm
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Southwest Gas plans to IPO Centuri Holdings to separate it as an independent company, aiming to maximize shareholder value. The IPO will be used to repay Centuri's debt, and Southwest Gas may sell remaining shares post-IPO.
The announcement of an IPO for Centuri Holdings indicates a strategic move by Southwest Gas to unlock shareholder value and improve financial flexibility. This news is likely to be viewed positively by investors as it shows proactive management and potential for value creation. The IPO is also expected to be tax-free, which is an additional positive aspect. However, the impact score is not the maximum due to the conditionality of market circumstances and regulatory approvals.
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IMPORTANCE 80
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