By Lisa Kerner
Charlotte, N.C., Sept. 19 - The boards of directors of MidAmerican Energy Holdings Co. and Constellation Energy Group, Inc. approved a definitive merger agreement between the two companies, it was announced on Friday.
MidAmerican Energy will acquire all of the outstanding shares of Constellation Energy for approximately $4.7 billion, or $26.50 cash per share.
Constellation Energy, a Baltimore energy products provider, will issue $1 billion of preferred equity yielding 8% to MidAmerican as agreed under the companies' tentative agreement announced on Thursday.
The transaction is subject to shareholder approval and regulatory approvals. It is expected to close within nine months, a joint news release said.
It was reported in a form 8-K filed with the Securities and Exchange Commission on Thursday that the definitive agreement would include a $175 million termination fee payable to MidAmerican by Constellation Energy.
MidAmerican Energy is also an energy services provider. The company is located in Des Moines.
| Acquirer: | MidAmerican Energy Holdings Co.
|
| Target: | Constellation Energy Group, Inc.
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| Announcement date: | Sept. 19
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| Price per share: | $26.50
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| Transaction total: | $4.7 billion
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| Termination fee: | $175 million
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| Expected closing: | Within nine months
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| Stock price for target: | NYSE: CEG: $24.20 on Sept. 18
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