Aquila, Black Hills merger granted one more state approval

By Lisa Kerner

Charlotte, N.C., Oct. 17 - The Nebraska Public Service Commission approved Black Hills Corp.'s proposed acquisition of a portion of Aquila, Inc.

The Iowa Utilities Board previously gave its approval for the transfer of utility assets in that state. Similar approval applications are pending in Kansas and Colorado, a company news release stated.

Aquila shareholders approved the merger deal on Oct. 9.

As previously reported, Black Hills and Great Plains Energy Inc. 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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