Algonquin Power & Utilities Corp. to buy Empire District Electric Co. for $2.4 billion

algonquin power elp

Algonquin Power & Utilities Corp. and the Empire District Electric Co. said a unit of Liberty Utilities Co., APUC's regulated utility business, entered into a merger agreement in which Liberty Utilities will indirectly buy Empire and its units.

Under the terms of the all-cash transaction, which has been unanimously approved by the board of directors of each company, Empire’s shareholders will receive $34 per common share, representing an aggregate purchase price of about $2.4 billion, including the assumption of about $0.9 billion of debt as of September 30, 2015.

The purchase price represents a 21 percent premium to the closing price on February 8, 2016 and a 50 percent premium to Empire’s unaffected share price on December 10, 2015.

Closing of the transaction is subject to customary closing conditions, including the approval of Empire’s common shareholders, and the receipt of certain state and federal regulatory and government approvals, including approval of the relevant commissions of the states of Arkansas, Kansas, Missouri and Oklahoma, the Federal Communications Commission, the Committee on Foreign Investment in the United States and the Federal Energy Regulatory Commission (FERC), and the expiration or termination of the waiting period under the Hart-Scott-Rodino Act.

The transaction is expected to close in Q1 2017.

At the closing of the transaction, Empire will become a unit of Liberty Utilities and will cease to be a publicly-held corporation. Until such time as the acquisition closes, Empire expects to pay its regular quarterly dividends at the annualized rate (currently $1.04 per share).

The Empire District Electric Co. is a Joplin, Missouri based regulated electric, gas (through its unit the Empire District Gas Co.), and water utility, collectively serving about 218,000 customers in Missouri, Kansas, Oklahoma and Arkansas.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


Making DDoS Mitigation Part of Your Incident Response Plan: Critical Steps and Best Practices

Like a new virulent strain of flu, the impact of a distributed denial of service (DDoS) attack is...

The Multi-Tax Challenge of Managing Excise Tax and Sales Tax

To be able to accurately calculate multiple tax types, companies must be prepared to continually ...

Operational Analytics in the Power Industry

Cloud computing, smart grids, and other technologies are changing transmission and distribution. ...

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Latest Energy Jobs

View more Job Listings >>

Archived Articles

PennEnergy Articles
2008 | 2009 | 2010 | 2011 | 2012 | 2013

OGJ Articles
2011 | 2012 | 2013

OGFJ Articles
2011 | 2012 | 2013

Power Engineering Articles
2011 | 2012 | 2013

Power Engineering Intl Articles
2011 | 2012 | 2013

Utility Products Articles
2011 | 2012 | 2013

HydroWorld Articles
2011 | 2012 | 2013

COSPP Articles
2011 | 2012 | 2013

ELP Articles
2011 | 2012 | 2013