One investor has apparently seen enough: it wants to take full control of El Segundo-based electric vehicle charging network firm EVgo Inc.
New York-based LS Power Equity Advisors last week provided EVgo with an unsolicited offer to buy out the remaining shares of the company; at the time, it owned about 57% of the company.
The offer of $2 per share represented a nearly 60% premium on the most recent closing share price of $1.26. Predictably, the offer sent prices up last week, with shares closing at $1.75 on Thursday.
Representatives from both EVgo and LS Power did not offer any official statements addressing the merits of the offer, though the former noted it had appointed a committee to evaluate the proposal.
Since forming in 2010, EVgo has become one of the nation’s largest EV charging infrastructure developers. It has deployed more than 1,200 fast charging locations throughout 47 states, primarily alongside retail outlets and malls, grocery stores, rideshare operators and autonomous vehicle companies.
Powering EVs
EVgo hasn’t let up on its quest to make quick EV recharging a common amenity for American motorists, particularly as EVs continue to catch on with consumers who maintain their desire for long-distance trips.
Days after the takeover offer, EVgo opened its first supercharger site – a 12-stall arrangement near downtown Chicago. It expects to add hundreds more to its nationwide network, mostly in cooperation with longtime partner and retail property owner Regency Centers.
“Deploying our first EVgo supercharger marks an important milestone in growing our customer base while supporting the EV industry’s transition to NACS,” EVgo Chief Executive Badar Khan said in a statement, referring to North American Charging Standard charging port connections.
“By serving both Tesla and non-Tesla NACS drivers, we’re doubling EVgo’s addressable market and continuing to meet EV drivers where they are and where they want to charge.” EVgo also announced in September that its innovation lab is collaborating with Taipei, Taiwan-based Delta Electronics to develop its next-generation charging system with a goal of delivering up to 750 kilowatts of charging power – an amount the company claimed could fully charge the fastest-charging vehicles on the market within 10 minutes.
“EVgo has served EV drivers for over 15 years, and our investment in our 750-kilowatt next-generation architecture future-proofs our network for current and future vehicles,” Khan said in that announcement. “Charge rates seen on the EVgo network are increasing, up nearly 20% in the last two years. We expect that to continue, and our new architecture will help meet growing demand for high-power charging while delivering an industry-leading customer experience for EV drivers.”
Third-quarter earnings for EVgo are to be announced later today.
Growing portfolio
Full control of EVgo is a natural addition to LS Power’s collection of energy-oriented companies and operations.
In October, LS Power acquired its seventh natural gas plant near Houston, Texas, from Baltimore, Maryland- based Constellation Energy, about two months after acquiring the sixth. Late last year, it acquired the U.S. onshore wind operation from global giant BP. It is also undertaking several electrical grid projects throughout the Golden State to improve power reliability amid increasing tech-driven demands.
LS Power last month closed its sixth fund with about $6 billion in commitments.
