Aquila, Great Plains merger approved by Aquila shareholders

By Devika Patel

Knoxville, Tenn., Oct. 9 - Aquila Inc. announced that its shareholders approved a merger agreement under which Great Plains Energy Inc. will acquire Aquila. The vote was held at a special meeting.

For the merger to proceed, holders of more than 50% of Aquila's outstanding shares had to vote for the merger. Roughly 255 million outstanding Aquila shares were voted at the meeting, with 88% of the votes approving the proposed merger. As of Aug. 27, about 375 million shares were outstanding.

"We are pleased Aquila shareholders voted in support of this merger," chairman and chief executive officer Richard C. Green said in a press release. "This is not only a positive vote for the future of the company, but when the transaction is complete our shareholders will hold stock in a dividend paying, investment-grade company."

As previously reported, Black Hills Corp. 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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