Carolina Power and Light Energy (CP&L) realized its goallast week of becoming one of the 10 largest energy companies in thenation as its acquisition of Florida Progress Corp. (FPC) receivedthe final regulatory approval it needed from the Securities andExchange Commission.
The $5.3 billion acquisition of Florida Power’s parent companywas first announced in August of 1999 and is still on track to meetits pre-set closing date of Nov. 30 (see NGI, Aug. 30, 1999).
“We are creating a new super-regional energy company poised forsuccess in the rapidly changing marketplace,” said WilliamCavanaugh, CEO of CP&L Energy. “Our increased size and assetsprovide us with a platform for growth and the ability to compete inany business environment.” Cavanaugh will continue to be chairman,CEO and president of the combined company.
Florida Progress shareholders have the option of receiving $54in cash per FPC share or CP&L common stock, plus one contingentvalue obligation (CVO) related to cash flows from synthetic fuelplants. FPC shareholders’ right to choose is subject to prorationif the elections exceed 65% cash or 35% stock.
Based on a 20-day trading period for CP&L common stock, theexchange ratio for the transaction will be 1.3473 shares ofCP&L common stock for each share of FPC stock to shareholderswho 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 millioncustomers in the Carolinas and Florida, this new company will be aleader in providing reliable, competitively priced energy in theSoutheast,” said Richard Korpan, CEO of Florida Progress. “The newcompany will be focused on exceeding our customers’ and ourshareholders’ expectations.”
CP&L said it has set a date of Dec. 4 to announce the newname for the holding company, along with a new New York StockExchange 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, toshareholders of record on Nov. 29.
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