Energy East Corp. has announced the successful completion of itsmerger with Connecticut Energy Corp., the first of four New Englandutility acquisitions initiated by the New York-based company in1999.
As a result of the merger each CNE share will be exchanged for$42 in cash or 1.82 Energy East shares, subject to proration. Whenit was announced last April, the cost of the purchase of the parentof Southern Connecticut Gas was estimated at $617 million. (SeeDaily GPI, April 26)
Still to close is a $1.2 billion transaction marrying Energy East,parent of New York State Electric & Gas, with CMP Energy, parentof Maine’s largest electric utility, Central Maine Power (See DailyGPI, June 16); a $577 million deal topurchase CTG Resources, parent of Connecticut Natural Gas (See DailyGPI, July 1); and the $96 millionacquisition of Berkshire Energy Resources, parent of Berkshire Gas inwestern Massachusetts (See Daily GPI, Nov. 11).
Upon completion of the mergers the self-styled “super-regionalenergy services and delivery company” will serve 2 millioncustomers (1.4 million electricity and 600,000 natural gas) inupstate New York and New England.
Based on preliminary results in the current transaction,ChaseMellon Shareholder Services, the exchange agent for themerger, indicates that the cash portion of the offer isoversubscribed and a proration factor of approximately .88675 willbe applied to shares for which a cash election was made. CNEshareholders will receive 1.82 Energy East shares for each CNEshare for which either a stock election or no election was made.
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