Status: Upcoming/New Filing
Acquirer: Algonquin Power & Utilities (Canada)
Acquired: Empire District Electric Company (Missouri)
Value: Approx. US$2.4 billion
Industry: Energy, Regulated Utilities
On June 16, 2016, shareholders of U.S. based Empire District Electric Company voted to approve a merger whereby Empire District Electric would become a subsidiary of Liberty Utilities (Central) Co. (“Liberty Central”) (an indirect subsidiary of Algonquin Power & Utilities Corp. (“Algonquin”), a Canadian based power company). (See Algonquin’s Q2 report here; and the full merger agreement, dated February 9, 2016, available in Empire’s Schedule 14A here.) In February, Empire estimated the total deal value at approximately $2.4 billion, representing a 21% premium to the February 8, 2016 closing share price. (See Empire’s Press Release here.)
The merger agreement conditioned the transaction on CFIUS approval. According to Empire District Electric Company’s Form 10-Q (filed on Aug. 5, 2016, and available here), the parties submitted a joint notice to CFIUS on June 29, 2016.
The Empire District Electric Company is a Missouri based regulated utility providing electricity, natural gas and water service to customers in Missouri, Kansas, Oklahoma, and Arkansas. Algonquin is a North American diversified generation, transmission and distribution utility company providing water, electricity and natural gas services to over 560,000 customers in the United States. (See Algonquin Press Release here.)