Home / Financial News / Algonquin Power & Utilities Corp to buy Missouri-based utility company Empire District Electric Co in US$2.4-billion deal

Algonquin Power & Utilities Corp to buy Missouri-based utility company Empire District Electric Co in US$2.4-billion deal

Algonquin Power & Utilities Corp. plans to buy the Empire District Electric Co., a Missouri-based utility, in an all-cash deal valued at US$2.4 billion, including debt.

OAKVILLE, Ont. – Algonquin Power & Utilities Corp. plans to buy the Empire District Electric Co., a Missouri-based utility, within an all-cash deal valued at US$2.4 billion, including debt.

Under terms of the friendly deal, Liberty Utilities, a subsidiary of Oakville, Ont.-based Algonquin, will pay US$34 per share for that company, while assuming US$900 million in Empire debt.

The companies said in a joint news release Tuesday the cost represents a 21 per cent premium to the closing cost of Empire stock on Monday.

The Empire District Electric Co., headquartered in Joplin, Mo., is really a regulated electric, gas and water utility serving about 218,000 customers in Missouri, Kansas, Oklahoma and Arkansas.

The transaction, which has the approval from the boards of both companies but is subject to shareholder, state and U.S. federal approvals, is anticipated to close in the first quarter of 2017.

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