Canada based international diversified electric utility holding company, Fortis Inc. has announced the acquisition of UNS Energy (fka Unisource Energy Corporation) , parent company of Tucson Electric Power and Unisource Energy Services.
Fortis Inc. was formed in 1987 after spun-off from transmission and distribution utility Newfoundland Light and Power Co. With in past couple of years company has announced two big shot acquisitions, namely Central Vermont Public Service in May 2011 worth $700 million and CH Energy group in February 2012 worth $1.5 billion.
Tuscon Electric Power is an electric utility company serving Southern Arizona in United States. The acquisition will not impact the operations of the two mentioned subsidiaries of the parent company UNS Energy. UNS has consolidated assets of $4 billion and its both mentioned subsidiaries serves 412,000 and 242,000 customers respectively across the state.
Fortis inc is supposed to inject $200 million in the company to improve its balance sheet. It will also help in the future planned purchase of Unit 3 at natural gas fired Gila river power plant. UNS is slowly moving away from coal power utilities to gas power and has investment plans in same field.
As per the deal Fortis has acquired UNS for $4.3 billion. The deal will let Fortis acquire debt of $1.8 billion all outstanding common stock for $60.25 per share. The common equity price mentioned for acquisition is 31% premium to the closing price of day prior to acquisition. After the deal UNS Energy stock price rose to $58.91 i.e. 29% rise, biggest gain in past 20 years. While on other side Fortis share price fell by 3.4%.
No comments:
Post a Comment