CVPS Shareholders Overwhelmingly Approve Sale to Gaz Metro
September 29 2011 - 12:13PM
Marketwired
With virtually no opposition, shareholders of Central Vermont
Public Service Corp. (NYSE: CV) have approved the sale of the
company to Gaz Métro Limited Partnership in voting that concluded
this morning. Gaz Métro is the parent company of Green Mountain
Power; CVPS and GMP will ultimately merge into one stronger Vermont
company after the sale is completed in 2012.
Shareholders began voting in late summer by phone, mail and
Internet, and final votes were cast today at a special shareholder
meeting in Rutland. Over 75 percent of the outstanding shares of
the company were represented at the meeting, and of those, more
than 97 percent voted in support of the $702 million sale.
"This is a critical milestone in the sale process," said CVPS
President and CEO Larry Reilly. "The overwhelming support of CVPS
shareholders demonstrates the soundness of the agreement and the
value it will provide to CVPS's owners, customers, employees and
other constituents."
"I am very pleased that CVPS shareholders have accepted our
offer and merger proposal, which will create one strong electric
utility to help our Vermont customers save hundreds of millions of
dollars over the next 20 years by combining CVPS and GMP service
areas," said GMP President and CEO Mary Powell, who will lead the
new company. "These savings will allow families, businesses and
communities to reinvest to strengthen Vermont, which is so
important for our economic vitality."
Earlier this week, CVPS received clearance for the sale from the
Federal Trade Commission. The transaction must still be approved by
the Federal Energy Regulatory Commission and the Vermont Public
Service Board, among others. The PSB has already held one
pre-hearing conference and has set a preliminary schedule for the
docket, with a workshop in October, a public hearing on Nov. 1, and
technical hearings in February.
The sale agreement provides significant benefits for customers,
communities, employees and shareholders, including $144 million in
customer savings over 10 years, benefits for low-income customers,
and the establishment of the Headquarters for Operations and Energy
Innovation in Rutland. Savings will not be achieved through layoffs
-- other than some executive officers -- but instead through
natural retirements and attrition, which will allow for the smooth
integration of both companies' workforces.
The all-cash transaction will provide CVPS shareholders $35.25
per common share, a 45 percent premium over the closing price of
$24.32 immediately prior to the announcement of the previous
agreement CVPS had reached with Fortis Inc. The CVPS board of
directors terminated the agreement with Fortis after deeming
"superior" the offer from Gaz Métro.
"The sale will create one much-stronger company, which will
capitalize on the strengths of both CVPS and GMP," Reilly said.
"The new company will continue to provide the top-quality service
for which both companies are known, and will build on the
environmental, renewable energy and community-focused programs they
have developed individually."
Powell and Reilly said now that CV's shareholders have voted
with such overwhelming support, the focus will turn to gaining the
remaining required regulatory approvals, particularly the approval
of the PSB.
"CVPS and GMP will work together to provide regulators with a
clear view of the tremendous benefits the sale and merger will
provide to customers and Vermont as a whole," Powell and Reilly
said. "We are extremely optimistic that they will find the sale to
be in the public interest, and that the combined company will be
uniquely positioned to provide high-quality, affordable and clean
energy services for decades to come."
About Central Vermont Public Service CVPS,
the largest electric utility in Vermont, serves more than 160,000
customers in 163 cities and towns across Vermont. The company is a
three-time winner of the Edison Electric Institute's national
Emergency Recovery Award, and CVPS Cow Power™ won the 2009 U.S.
Department of Energy Utility Green Program of the Year Award. CVPS
has been listed by Forbes Magazine as one of the most trusted
companies in America for more than five years.
About Green Mountain Power Green Mountain
Power generates, transmits, distributes and sells electricity in
Vermont and is a leader in wind and solar generation. It serves
more than 96,000 customers.
About Gaz Métro With over $3.6 billion in
assets, Gaz Métro is Quebec's leading natural gas distributor. Its
10,000-kilometer network serves 300 municipalities. Gaz Métro has
operated in this regulated industry since 1957 and is the trusted
energy provider to its customers in Quebec and Vermont, who choose
natural gas for its competitive price, efficiency, comfort and
environmental benefits. Gaz Métro is also present in the
electricity distribution market and is involved in natural gas
transportation and storage, the development of projects such as
wind power, natural gas as fuel for the transportation industry,
and biomethanation. Gaz Métro is committed to the satisfaction of
its customers, partners, employees and the communities it
serves.
Forward-Looking Statements Statements contained in this press
release that are not historical fact are forward-looking statements
intended to qualify for the safe-harbors from the liability
established by the Private Securities Litigation Reform Act of
1995. Statements made that are not historical facts are
forward-looking and, accordingly, involve estimates, assumptions,
risks and uncertainties that could cause actual results or outcomes
to differ materially from those expressed in the forward-looking
statements. Some of the factors that could cause actual results to
differ materially from those expressed in such forward-looking
statements include: the occurrence of any event, effect or change
that could give rise to a termination of the definitive agreement
entered into with Gaz Métro; the outcome of any legal proceedings
that may be instituted against CV and others following announcement
of the agreement; the inability to complete the transaction due to
the failure to obtain shareholder approval or the failure to
satisfy other conditions to the completion of the transaction,
including the receipt of certain regulatory approvals; risks that
the proposed transaction disrupts current plans and operations and
creates potential difficulties in employee retention; and the
amount of the costs, fees, expenses and charges related to the
transaction.
These and other risk factors are detailed in CV's Securities and
Exchange Commission filings. CV cannot predict the outcome of any
of these matters; accordingly, there can be no assurance that such
indicated results will be realized. Readers are cautioned not to
place undue reliance on these forward-looking statements that speak
only as of the date of this press release. CV does not undertake
any obligation to publicly release any revision to these
forward-looking statements to reflect events or circumstances after
the date of this press release.
Contact: Steve Costello Office (802) 747-5427 Pager (802)
742-3062
Central Vermont Public Service (NYSE:CV)
Historical Stock Chart
From Jun 2024 to Jul 2024
Central Vermont Public Service (NYSE:CV)
Historical Stock Chart
From Jul 2023 to Jul 2024