EVGO Stock Clocks Best Day In Two Years After Controlling Shareholder Takeover Proposal

• The proposed share price represents a potential upside of about 59% from the stock’s Friday close. 
• EVgo said that its Board has established a special committee of independent directors to review the proposal, but no decision has been made yet as to the company’s response.
• A completed deal would mean that EVGO will get delisted from Nasdaq.

Shares of EVgo Inc. (EVGO) jumped 47% on Monday, clocking its best day since Oct 2024, after the charging infrastructure company received a buyout proposal from its controlling shareholder, LS Power Equity Advisors.

According to a filing with the Securities and Exchange Commission, LS Power Equity Advisors has put forth a non-binding proposal to buy the Class A shares of the company it does not already own for $2 in cash. The proposed share price represents an upside of about 59% from the stock’s Friday close.

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LS Power currently owns about 178.7 million shares and holds about 56% of combined voting power. EVgo said that its Board has established a special committee of independent directors to review the proposal, but no decision has been made yet as to the company’s response.

Proposed Deal Format

LS Power said in its proposal that it expects a long-form merger rather than a tender offer followed by a short-form merger, to give public holders fuller disclosure and appraisal rights. A long-form merger requires formal board approvals and full vote from target shareholders. The firm also stated it has no interest in selling its stake or joining any alternative change-of-control transaction and will only pursue a deal if an independent special committee recommends it. The proposal is non-binding, carries no assurance of completion, and can be modified or withdrawn. A completed deal would mean that EVGO will get delisted from Nasdaq.

LS Power first acquired EVgo in late 2019 from Vision Ridge Partners and completed the deal in early 2020. It then took the company public in July 2021 via a SPAC combination with Climate Change Crisis Real Impact I Acquisition Corporation that valued EVgo at about $2.6 billion and left LS Power with majority control.

EVgo, which operates more than 1,200 fast-charging sites across 47 states, is scheduled to report third-quarter results on November 9. According to data from Fiscal AI, Wall Street on average expects the company to report revenue of $94.62 million and a loss per share of $0.12.

How Did EVGO Retail Traders React?

On Stocktwits, retail sentiment around EVGO stock jumped from 'bearish' to 'bullish' territory over the past 24 hours, while message volume jumped from 'normal' to 'extremely high' levels.

Some Stocktwits users dismissed the buyout proposal as undervaluing the company and lowballing investors.

Another user voiced optimism for EVgo negotiating better deal terms.

EVGO stock has dropped 36% year-to-date. 

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