Allego (NYSE:ALLG) stock is moving higher Monday after its majority shareholder, Meridiam, announced a transaction framework agreement.

The Details: Under the transaction framework agreement, Meridiam will launch a tender offer for all outstanding ordinary shares of Allego that are not owned by Meridiam or its affiliates.

The tender offer price is $1.70 per share, representing a 131% premium. After the tender offer is completed, Allego will delist itself from the New York Stock Exchange. Investors that choose not to accept the tender offer will remain invested.

Meridiam reaffirmed its long-term commitment to Allego including making available funds to develop, operate, and maintain charging sites in Germany. In addition, Meridiam will provide more equity-like capital to support Allego's growth.

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ALLG Price Action: At the time of publication, Allego stock is trading 127.2% higher at $1.67 per data from Benzinga Pro.

Image: Courtesy of Allego