Fortis to acquire CH Energy Group

Fortis to acquire CH Energy Group

Fortis has used negotiation skills to enter an agreement to purchase CH Energy Group.

This will cost it an estimated $1.5 billion (£948.89 million), with each share valued at $65, representing a premium of around 10.5 per cent of the most recent closing price of CH Energy's common shares.

When the acquisition has been completed - which should take less than 12 months - Fortis will assume debts of around $500 million.

However, this is subject to the approval of the Federal Energy Regulatory Commission and the New York Public Service Commission, as well as common shareholders.

Fortis president and chief executive officer Stan Marshall explained the initiative will "deliver tangible benefits and support the utility's focus on enhancing customer service".

"CH Energy Group's regulated utility operations in New York State are similar to our regulated utility operations in Canada," he added.

Chairman of the board and chief executive officer of CH Energy Group Steven Lant explained the company believes the transaction is good for consumers, employees and shareholders.

Posted by Ken Hayes

Source: Fortis press release, February 21st