Great Plains Energy, Aquila merger on track to close mid-July

By Lisa Kerner

Charlotte, N.C., July 1 - Great Plains Energy Inc. and Aquila, Inc. have set July 14 as the tentative closing date for their merger following approval by the Missouri Public Service Commission of the companies' joint application with Kansas City Power & Light.

The closing is subject to satisfaction of closing conditions as well as completion of the proposed sale of Aquila's natural gas utilities in Colorado, Kansas, Nebraska and Iowa and its Colorado electric utility properties to Black Hills Corp., according to a statement released on Tuesday.

Great Plains Energy, the parent of Kansas City Power & Light, 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 Energy common stock for each share of Aquila common stock.

The transaction was valued at $4.54 per share, or about $1.7 billion, and included the assumption of Aquila's net debt of approximately $1.7 billion when first announced in February 2007.

Immediately prior to Great Plains Energy's acquisition of Aquila, Black Hills will acquire from Aquila its electric utility in Colorado and natural gas utility properties along with the associated liabilities for $940 million in cash, it was previously reported.

Aquila shareholders will own approximately 27% of Great Plains Energy common stock, which currently pays an annual dividend of $1.66 per share, once the transactions are completed.

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

Black Hills is a diversified energy company based in Rapid City, S.D.

Great Plains Energy is the Kansas City, Mo., holding company for Kansas City Power & Light and Strategic Energy, LLC.

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