HOUSTON - Via Renewables, Inc. (NASDAQ:VIA; VIASP), an independent retail energy services company, announced today that its shareholders have approved a merger with Retailco, LLC and its subsidiary. The approval, which took place during a special meeting, saw a significant majority of shareholders vote in favor of the Agreement and Plan of Merger and a related compensation proposal for the company's executive officers.
The merger proposal was supported by approximately 83.3% of the holders of Via Renewables' Class A and Class B common stock, excluding shares held by certain insiders and their immediate families. Furthermore, the compensation proposal received a non-binding, advisory approval from about 94.7% of the shares present and entitled to vote.
The transaction is expected to be finalized before the end of the second quarter of this year. Once completed, Via Renewables' Class A common stock will be de-listed from NASDAQ. However, the company's 8.75% Series A Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Stock will remain unaffected by the merger and continue to be listed on NASDAQ.
Via Renewables, founded in 1999 and headquartered in Houston, Texas, operates in 105 utility service territories across 20 states and the District of Columbia, offering alternative natural gas and electricity services to residential and commercial customers.
The approval of the merger follows the guidelines set forth in the definitive proxy statement filed with the U.S. Securities and Exchange Commission on March 28, 2024. The merger is subject to customary closing conditions, and the parties are working to complete the transaction promptly.
This news is based on a press release statement and contains forward-looking statements that involve risks and uncertainties. The company cautions that these statements are subject to factors that could cause actual results to differ materially from those projected. Some of these factors include the potential for termination of the Merger Agreement, failure to satisfy closing conditions, risks related to management's attention, legal or regulatory proceedings, employee retention challenges, and costs associated with the merger. Additional risk factors are detailed in the company's annual and quarterly reports.
In other recent news, Via Renewables, a retail energy services provider, has been making significant strides. The company has received favorable recommendations for its proposed merger with Retailco, LLC and its subsidiary NuRetailco LLC from advisory firms Institutional Shareholder Services, Inc. (ISS) and Glass Lewis & Co. The merger, if approved, will result in Via Renewables becoming a privately held company.
Simultaneously, the company's Q1 2024 results indicate a mixed financial performance. The adjusted EBITDA for the first quarter of 2024 fell to $15.1 million from $18.8 million in the prior year due to lower unit margins and mild weather affecting gas volumes. However, the company grew its customer base and announced an upcoming acquisition expected to enhance the bottom line from the second quarter.
These are recent developments for Via Renewables, which continues to navigate the renewable energy market. The company's focus on increasing its customer base and its proactive hedging strategies have helped to mitigate risks and position it for potential growth. As Via Renewables continues its journey, stakeholders will be closely monitoring the impact of its acquisition strategy and market expansion efforts on its financial performance in the coming quarters.
InvestingPro Insights
As Via Renewables, Inc. (NASDAQ:VIA) navigates through the merger process with Retailco, LLC, investors and shareholders are closely monitoring the company's financial health and market position. According to InvestingPro data, Via Renewables currently boasts a market capitalization of 77.39 million USD, reflecting the company's value as perceived by the market. Additionally, the company's price-to-earnings (P/E) ratio stands at 2.66, suggesting that the shares are trading at a low earnings multiple compared to the company's earnings over the last twelve months as of Q1 2024. This could indicate that the stock is potentially undervalued.
Another key metric, the EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the same period is reported at 81.35 million USD, showing a significant growth rate of 1268.47%. This substantial increase in EBITDA growth reflects the company's improved profitability before accounting for financial and accounting deductions. The impressive growth rate may catch the eye of investors looking for companies with strong earnings momentum.
Among the InvestingPro Tips, two particularly relevant to Via Renewables at this juncture are the company's low revenue valuation multiple and the fact that its stock generally trades with low price volatility. These insights suggest that Via Renewables is trading at a valuation that may not fully reflect its revenue streams, and it offers a relatively stable investment in terms of price fluctuations, which could be appealing for risk-averse investors.
For those looking to delve deeper into Via Renewables' financials and market performance, InvestingPro offers additional tips that can provide a more comprehensive understanding of the company's position. Interested investors can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, granting access to valuable insights that could inform investment decisions. There are 9 additional InvestingPro Tips available for Via Renewables, which can be found at https://www.investing.com/pro/VIA.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.