Fortis Inc./CH Energy
On February 21, 2012, Fortis Inc., entered into an agreement to acquire CH Energy Group, Inc. (NYSE: CHG) for $65.00 per common share in cash, for an aggregate purchase price of approximately $1.5 billion, including the assumption of approximately $500 million of debt on closing.
The purchase price represents an approximate 10.5% premium above the most recent closing price of CH Energy Group common shares. The closing of the Acquisition, which is expected to occur within 12 months, is subject to receipt of CH Energy Group common shareholder approval; regulatory and other approvals, including those of the New York Public Service Commission and the Federal Energy Regulatory Commission, and to the expiration of the waiting period under the Hart-Scott-Rodino Act; and the satisfaction of customary closing conditions.
Following closing of the Acquisition, the total assets of Fortis are expected to increase by approximately 16% to $17 billion. The Corporation's regulated electric and gas utility operations will account for approximately 91% of the total assets of Fortis.
Fortis expects to use its multiyear committed credit facility to finance the purchase in the short term. The acquisition will be financed on a long-term basis consistent with the Corporation's current capital structure and commitment to maintaining its A- credit rating.
Legal and financial advisors to Fortis were White & Case LLP and Bank of America Merrill Lynch, respectively.
The purchase price represents an approximate 10.5% premium above the most recent closing price of CH Energy Group common shares. The closing of the Acquisition, which is expected to occur within 12 months, is subject to receipt of CH Energy Group common shareholder approval; regulatory and other approvals, including those of the New York Public Service Commission and the Federal Energy Regulatory Commission, and to the expiration of the waiting period under the Hart-Scott-Rodino Act; and the satisfaction of customary closing conditions.
Following closing of the Acquisition, the total assets of Fortis are expected to increase by approximately 16% to $17 billion. The Corporation's regulated electric and gas utility operations will account for approximately 91% of the total assets of Fortis.
Fortis expects to use its multiyear committed credit facility to finance the purchase in the short term. The acquisition will be financed on a long-term basis consistent with the Corporation's current capital structure and commitment to maintaining its A- credit rating.
Legal and financial advisors to Fortis were White & Case LLP and Bank of America Merrill Lynch, respectively.
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