News Column


June 27, 2014

A diversified utility Wisconsin Energy Corporation inked a definitive agreement with Integrys Energy Group, Inc. to acquire the latter. Wisconsin Energy will invest a total of $9.1 billion, consisting of cash, stock and assumed debt. It is subject to approvals, the deal is expected to close in 2015. The combined entity will be named WEC Energy Group, Inc.

As per the agreement, the shareholders of Integrys Energy will receive a total of $71.47 per Integrys Energy share, which includes a combination of 74% stock and 26% cash.

The shareholders of Integrys Energy will receive 1.128 shares of Wisconsin Energy common stock and cash of $18.58 for every Integrys Energy share they own.

Post transaction, the shareholders of Wisconsin Energy will obtain 72% ownership of WEC Energy Group while Integrys Energy will hold the remaining 28% stake.

WEC Energy Group, Wisconsin Public Service, Peoples Gas, North Shore Gas, Minnesota Energy Resources and Michigan Gas Utilities, will serve 4.3 million electricity and natural gas customers in Wisconsin, Illinois, Michigan and Minnesota. In addition, WEC Energy Group will obtain a 60% stake in American Transmission Company, LLC.

The combined entity s power generation capacity will be 8,803 MW. It will operate 71,000 miles of electric distribution lines and over 44,000 miles of gas transmission and distribution lines.

Both the utilities with their customers and investors stand to benefit from the transaction. The consolidated WEC Energy Group will bring economies to scale with the ability to efficiently execute long-term growth plans and focus on strategic objectives, while improving shareholder value. The deal is expected to be accretive to Wisconsin Energy s earnings in the first full calendar year after closing.

For more stories on investments and markets, please see HispanicBusiness' Finance Channel

Source: TendersInfo (India)

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