Bilbao, Spain, and Portland, ME, June 26, 2007 — The boards of IBERDROLA S.A. and Energy East Corp., meeting in Madrid and New York, respectively, have approved a merger agreement under which IBERDROLA will acquire 100% of Energy East, which will become part of the IBERDROLA group.
According to the terms of the merger agreement, the shareholders of Energy East would receive $28.50 in cash per share at closing, representing a premium of 20.2% over Energy East’s average closing stock price for the 30 day period ending June 22, 2007 (27.4% over Energy East’s closing stock price on June 22, 2007).
The transaction values Energy East at approximately $8.6 billion in terms of enterprise value (market equity value plus net debt).
The transaction is subject to approval by the shareholders of Energy East, Federal and State authorizations, and other customary closing conditions and is expected to close in 2008.
Following the close of the transaction, Energy East’s utility subsidiaries will continue to operate under their current names (The Berkshire Gas Co., Central Maine Power Co., Connecticut Natural Gas Corp., New York State Electric & Gas Corp., Rochester Gas and Electric Corp., and The Southern Connecticut Gas Co.).
Upon completion of the transaction, IBERDROLA will have 24 million electricity points of supply, 3.0 million gas points of supply, and an installed capacity of nearly 42,000 megawatts (MW).
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