Canada's Fortis To Buy CH Energy For Almost $1B


Salon Staff
February 21, 2012 6:45PM (UTC)

POUGHKEEPSIE, N.Y. (AP) — CH Energy says it has agreed to a buyout offer of just under $1 billion from the Canadian utility Fortis.

CH Energy is the parent company of Central Hudson Gas & Electric Corp. It will remain a stand-alone company based in Poughkeepsie, N.Y.

Advertisement:

Fortis Inc. will pay CH Energy Group Inc. shareholders $65 per share, representing an 11 percent premium over the company's Friday closing share price. CH Energy shares jumped almost 10 percent to $64.42 in premarket trading.

Based on CH Energy's 14.9 million outstanding shares, the deal is worth about $967.9 million. CH Energy valued the deal at about $1.5 billion including about $500 million in debt.

The deal, which is subject to regulatory and CH Energy shareholder approval, is expected to close in the first quarter of 2013.


Salon Staff

MORE FROM Salon Staff



Fearless journalism
in your inbox every day

Sign up for our free newsletter

• • •