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Allego to delist from NYSE after majority shareholder's tender offer

EditorNatashya Angelica
Published 08/02/2024, 07:15 AM
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PARIS & ARNHEM, Netherlands - Allego N.V. (NYSE: ALLG), a provider of electric vehicle (EV) charging solutions, is set to voluntarily delist its ordinary shares from the New York Stock Exchange. This move follows the completion of a tender offer by its majority shareholder, Madeleine Charging B.V.

The company plans to file the necessary paperwork with the U.S. Securities and Exchange Commission (SEC) on August 12, 2024, to initiate the delisting process. According to Rule 12d2-2 under the Securities Exchange Act of 1934, the delisting is expected to become effective ten days post-filing. Consequently, Allego anticipates that the last day its shares will trade on the NYSE will be around August 22, 2024.

Allego, recognized for its commitment to promoting electric mobility using 100% renewable energy, has established a significant presence in the EV charging sector. The company offers a variety of charging solutions, including the Allamo and EV Cloud platforms, and operates a network of approximately 35,000 charging points across 16 countries. Since its inception in 2013 and subsequent public listing in 2022, Allego has grown to employ a team of 220, focusing on making EV charging accessible and enjoyable.

The information regarding the delisting is based on a press release statement from Allego N.V.

In other recent news, Allego N.V. has seen significant developments in its financial leadership and strategic partnerships. The electric vehicle charging solutions provider has appointed Steven Salo as its new Chief Financial Officer, effective from July 1, 2024. Salo's extensive experience in financial leadership and strategic planning is anticipated to bolster Allego's financial strategy.

In addition to this key appointment, Allego has also entered into a strategic partnership with Ford Motor Company (NYSE:F). This collaboration will see the installation of Allego's ultra-fast charging stations at Ford dealerships across Europe, aiming to enhance the charging convenience for Ford's electric vehicle customers.

Despite these positive developments, the company is facing a potential delisting from the New York Stock Exchange due to its share price falling below the required minimum average. Allego has been given a six-month period to rectify the situation and is considering options such as a reverse share split.

These are recent developments that underline the company's ongoing efforts in the electric vehicle sector. It's crucial to note that these events do not impact Allego's ordinary shares' listing, provided the company continues to meet other NYSE listing requirements. Allego's business operations and SEC reporting obligations remain unaffected by the potential delisting notice.

InvestingPro Insights

As Allego N.V. (NYSE: ALLG) prepares for its voluntary delisting from the New York Stock Exchange, investors are closely monitoring the company's financial health and market performance. According to InvestingPro data, Allego has a market capitalization of $461.42 million, reflecting its standing in the electric vehicle (EV) charging market. Despite a revenue growth of 8.63% over the last twelve months as of Q4 2023, the company has faced challenges, including a quarterly revenue decline of 20.12% in Q4 2023.

InvestingPro Tips indicate that Allego operates with a significant debt burden and may struggle with making interest payments on its debt. These financial strains are evident in the company's negative price-to-earnings (P/E) ratio of -4.15 and an operating income margin of -43.9% for the same period. Analysts do not anticipate the company will be profitable this year, which is a critical factor for investors to consider as they assess the implications of the delisting.

On the positive side, analysts anticipate sales growth in the current year, and the stock has shown a strong return over the last three months, with a 33.07% price total return. This suggests that despite the financial challenges, there is investor optimism around Allego's future revenue potential. Additionally, the company does not pay a dividend to shareholders, which is typical for firms that are focused on growth and reinvestment.

For those interested in a deeper analysis of Allego's financials and market performance, InvestingPro offers additional tips and metrics. There are 12 more InvestingPro Tips available at https://www.investing.com/pro/ALLG, providing investors with a comprehensive view of the company's standing and potential investment opportunities.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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