Electric and gas utility holding company Fortis Inc (TSE:FTS, Mkt cap 11.93B, P/E 21.47, Div/yield 0.38/3.60, EPS 1.94, Shares 284.47M) is a step closer to its planned acquisition of electric transmission company ITC Holdings Corp. after the deal was approved by the Missouri Public Service Commission (MPSC).
The two companies announced on Thursday that the MPSC had cleared the acquisition. It was approved by shareholders earlier this year.
Fortis first revealed in February 2016 that it had agreed to acquire ITC for US$11.3bn. ITC shareholders will receive approximately US$6.9bn in Fortis common shares and cash at closing and Fortis will assume approximately US$4.4bn of ITC debt.
When the acquisition is completed, ITC will become a subsidiary of Fortis and approximately 27% of its common shares will be held by ITC shareholders.
ITC owns and operates high-voltage transmission facilities in Michigan, Iowa, Minnesota, Illinois, Missouri, Kansas and Oklahoma, serving a combined peak load exceeding 26,000 megawatts along approximately 15,700 miles of transmission line.
Through this acquisition Fortis will become one of the top 15 North American public utilities ranked by enterprise value, with an estimated enterprise value of C$42bn (US$30bn).
“We are pleased to receive approval from the MPSC, and look forward to continuing to serve the transmission needs of the State of Missouri,” commented Barry Perry, president and CEO of Fortis. “The transaction continues to move forward on schedule and is expected to close by the end of the year.”
Closing of the acquisition is subject to receipt of certain other regulatory authorizations, including FERC and remaining state approvals.
Fortis Inc (TSE:FTS) is a St Johns NL based electric and gas utility company. The Company’s segments include Regulated Utilities and Non-Regulated Utilities. The Regulated Utilities segment includes Regulated Electric & Gas Utilities-United States, which consists of UNS Energy Corporation (UNS Energy) and Central Hudson Gas & Electric Corporation (Central Hudson); Regulated Gas Utility-Canadian, which consists of FortisBC Energy Inc. (FortisBC Energy); Regulated Electric Utilities-Canadian, which consists of FortisAlberta Inc. (FortisAlberta), FortisBC Electric and Eastern Canadian, and Regulated Electric Utilities-Caribbean, which includes its ownership interest in Caribbean Utilities Company, Ltd. (Caribbean Utilities), Fortis Turks and Caicos, and its investment in Belize Electricity Limited (Belize Electricity). The Non-Regulated Utilities segment consists of Fortis Generation and Aitken Creek Gas Storage LLC, a provider of natural gas transmission and storage services. More from Reuters »
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