CP&L/Florida Progress Receive Final Approval
Carolina Power and Light Energy (CP&L) realized its goal
last week of becoming one of the 10 largest energy companies in the
nation as its acquisition of Florida Progress Corp. (FPC) received
the final regulatory approval it needed from the Securities and
The $5.3 billion acquisition of Florida Power's parent company
was first announced in August of 1999 and is still on track to meet
its pre-set closing date of Nov. 30 (see NGI, Aug. 30, 1999).
"We are creating a new super-regional energy company poised for
success in the rapidly changing marketplace," said William
Cavanaugh, CEO of CP&L Energy. "Our increased size and assets
provide us with a platform for growth and the ability to compete in
any business environment." Cavanaugh will continue to be chairman,
CEO and president of the combined company.
Florida Progress shareholders have the option of receiving $54
in cash per FPC share or CP&L common stock, plus one contingent
value obligation (CVO) related to cash flows from synthetic fuel
plants. FPC shareholders' right to choose is subject to proration
if the elections exceed 65% cash or 35% stock.
Based on a 20-day trading period for CP&L common stock, the
exchange ratio for the transaction will be 1.3473 shares of
CP&L common stock for each share of FPC stock to shareholders
who elect the stock swap option. FPC shareholders had until 5 p.m.
EST yesterday to choose an option.
"With more than 19,000 MW of generation capacity and 2.8 million
customers in the Carolinas and Florida, this new company will be a
leader in providing reliable, competitively priced energy in the
Southeast," said Richard Korpan, CEO of Florida Progress. "The new
company will be focused on exceeding our customers' and our
CP&L said it has set a date of Dec. 4 to announce the new
name for the holding company, along with a new New York Stock
Exchange ticker symbol.
In related news. FPC announced yesterday that based on the Nov.
30, 2000, closing date for the combination with CP&L Energy,
shareholders will be paid a prorated quarterly cash dividend of
$0.518 per share. The dividend will be issued on Dec. 20, to
shareholders of record on Nov. 29.
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