Termination dates extended in Great Plains, Black Hills, Aquila deal

By Lisa Kerner

Charlotte, N.C., Jan. 31 - Great Plains Energy, Inc., Black Hills Corp. and Aquila Inc. mutually extended the termination dates for their acquisition and asset sale transactions to May 1 from Feb. 6.

The transactions could close earlier, however, depending on the receipt of regulatory consents.

Regulatory hearings remain with the Missouri Public Service Commission on the proposed acquisition of Aquila by Great Plains, according to a Great Plains news release.

"We requested in December a postponement of the regulatory hearings in Missouri while we worked on a revised proposal that would address the concerns raised by parties," Great Plains chairman and chief executive officer Michael Chesser said in the release.

"We are continuing discussions with those parties about the revised proposal, but have filed a proposed procedural schedule in case we don't reach an agreement," Chesser added.

The companies proposed that hearings be resumed with the Missouri Public Service Commission beginning on March 17. Hearings on the companies' related application with the Kansas Corporation Commission are expected to start on Feb. 12.

Approvals are still required by the Missouri, Kansas and Colorado regulatory commissions in order for the transactions to be completed.

As previously reported, Black Hills and Great Plains will each acquire portions of Aquila in separate transactions.

Great Plains will acquire all the outstanding shares of Aquila and its Missouri-based electric utility assets for $1.80 in cash plus 0.0856 of a share of Great Plains common stock for each share of Aquila common stock. The transaction, valued at $4.54 per share, or about $1.7 billion, includes the assumption of some $1 billion of Aquila's net debt.

Black Hills will acquire Aquila's electric utility in Colorado, its gas utilities in Colorado, Kansas, Nebraska and Iowa and its associated liabilities for $940 million in cash immediately prior to Great Plains' acquisition of Aquila.

Based in Kansas City, Mo., Aquila owns electric power generation assets and operates electric and natural gas transmission and distribution networks.

Great Plains is a Kansas City, Mo., holding company for Kansas City Power & Light and Strategic Energy, LLC. Black Hills is a diversified energy company based in Rapid City, S.D.

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