MasTec crumbles on deal to acquire IEA for about $1.1 billion

MasTec

25/07/2022 13:55

** Shares of infrastructure construction company MasTec
 MTZ.N  down 11.8% at $63.92 before the bell after deal to
acquire Infrastructure and Energy Alternatives  IEA.O 
    ** Co will acquire all of the outstanding shares of IEA in a
cash-and-stock transaction valued at $14.00 per IEA share
 urn:newsml:reuters.com:*:nPn4NKYKSa
    ** IEA shareholders to receive $14/share in the form of
$10.50/share in cash and 0.0483 of a MasTec share, with a value
of $3.50/share
    ** Based on estimated IEA net debt levels at closing, the
total deal value will be ~$1.1 billion
    ** Co expects to issue ~2.8 million MasTec shares in the
transaction, which is expected to close late Q4 2022
    ** In addition, co lowers its full-year 2022 adjusted EPS
guidance to ~$3.09, citing higher levels of costs expected
during the second half of the year
    ** Shares of Infrastructure and Energy Alternatives up 27.5%
at $13.30 premarket
    ** As of last close, MTZ shares down ~21% YTD

 (Reporting by Aatrayee Chatterjee in Bengaluru)
 ((Aatrayee.Chatterjee@thomsonreuters.com;))