From: Mercom India
Shell USA, a subsidiary of the oil major Shell, has acquired Volta, a U.S.-based Electric Vehicle (EV) Infrastructure company, in an all-cash transaction valued at approximately $169 million.
The acquisition is one of many steps the oil major has taken over the last couple of years toward achieving its 2050 net-zero emissions target and 2035 Net Carbon Footprint (NCF) target.
Under the definitive merger agreement, Shell USA would acquire all outstanding shares of Class A common stock of Volta at $0.86 per share, representing ~18% premium to the closing price of Volta stock on January 17, 2023, and the last full trading day before the announcement.
Volta operates over 3,000 EV charging points at shopping centers, grocery stores, pharmacies, and other sites across 31 U.S. states and territories. The company owns a development pipeline of more than 3,400 additional charging points.
Volta also generates advertising revenues from screens embedded into the charging points.
The transaction is expected to bring more value to Shell’s established infrastructure with Volta’s dual charging and media network.
Vince Cubbage, Interim Chief Executive Officer of Volta, said, “While the EV infrastructure market opportunity is potentially enormous, Volta’s ability to capture it independently, in challenging market conditions and with ongoing capital constraints, was limited. This transaction creates value for our shareholders and provides our exceptional employees and other stakeholders a clear path forward.”
The transaction is scheduled to close in the first half of 2023, subject to shareholder and regulatory approvals.
Shell would also help repay Volta’s third-party debt of $14 million, and an affiliate of Shell USA will provide subordinated secured term loans to Volta to bridge the company through the closing of the transaction.
Goldman Sachs & Co. and Barclays Capital advised Volta on the transaction, and Shearman & Sterling were the company’s legal advisors. Raymond James & Associates provided a fairness opinion to Volta’s Board of Directors.
UBS Securities served as a financial advisor to Shell, and Norton Rose Fulbright U.S. was the company’s legal advisor.
In early 2021, the company had announced its plans to invest $5-6 billion annually into its growth pillar, which includes $2-3 billion investment in renewables and energy solutions. The company also said it would invest $3 billion in marketing, including the growth of its global EV network to around 500,000 by 2025.
In April last year, Shell Overseas Investment, a wholly-owned subsidiary of Shell, acquired 100% of Solenergi Power for $1.55 billion and the Sprng Energy group of companies.