‘Several’ billion dollar valuation for AmeriGas positive for UGI, says Mizuho

Mizuho notes that a Bloomberg article published Friday morning states that a unit of Abu Dhabi National Oil Company, or ADNOC, is considering an investment in UGI Corporation’s AmeriGas and references a potential valuation of “several” billion dollars, though it is unclear if this refers to enterprise value or equity value. The firm, which assumes the former, notes that the subsidiary has about $2.35B in net debt and estimates that a $3B valuation would therefore imply about $700M of equity value. Assuming a 49% stake, this would bring in about $350M of capital, added the firm, which has a Neutral rating and $27 price target on UGI shares.