Southwest Gas To Sell 9 Mln Centuri Shares, Adds $50M Private Placement With Icahn

(RTTNews) - Southwest Gas Holdings, Inc. (SWX) Wednesday has announced a significant secondary public offering involving 9 million existing shares of Centuri Holdings, Inc. common stock.

The company also expects to grant underwriters a 30-day option to purchase up to 1.35 million additional shares. This offering marks a major step in Southwest Gas's strategic reduction of its stake in Centuri, an infrastructure services provider.

Alongside the public sale, Icahn Partners and Icahn Partners Master Fund LP—entities affiliated with Carl C. Icahn—will acquire $50 million worth of Centuri shares in a concurrent private placement, priced at the public offering rate. This private transaction is expected to close shortly after the public offering, pending customary closing conditions.

The offerings are part of a broader move to optimize Southwest Gas's portfolio and improve its financial flexibility. The shares in the public offering are being sold under an effective shelf registration filed with the SEC. A preliminary prospectus supplement will be made available through the SEC's website.

This dual transaction not only realigns Centuri's shareholder base by involving both public investors and strategic private buyers, but also provides Southwest Gas with a substantial capital influx. However, it does signify a reduced future revenue stake in Centuri's operations.

Wednesday, SWX closed at $69.06, down 2.81%, and is currently trading at $69.06, up 0.03% on the NYSE.