Proxy advisers recommend Florida Public Utilities holders vote for merger with Chesapeake Utilities

By Jennifer Chiou

New York, Oct. 9 - Florida Public Utilities Co. announced that two independent proxy advisory firms, Glass, Lewis & Co. and Proxy Governance, Inc., have each recommended that Florida Public shareholders vote in favor of the strategic merger with Chesapeake Utilities Corp.

Chesapeake already said it expects to close the merger on Oct. 29, with the merger becoming effective Nov. 1.

As previously noted, shareholders of both companies will vote on the transaction at separate special meetings on Oct. 22.

In its report, Glass, Lewis said: "The premium offered for Florida Public shares seems adequate. In addition, since the proposed transaction is a stock-for-stock deal, shareholder value realized from the acquisition depends on the future performance of the combined company. The Florida Public board believes combining with Chesapeake offers the best opportunity for the company to meet its objectives and enhance shareholder value."

The companies announced in April that they will combine in an all-stock transaction valued at roughly $74 million.

As reported, Florida shareholders will receive 0.405 of a share of Chesapeake common stock for each share of Florida they hold.

Chesapeake, a Dover, Del.-based diversified utility company, said the merger has received all required public service commission regulatory approvals.

Florida Public Utilities distributes natural gas, propane and electricity to residential, commercial and industrial customers in Florida. The company is based in West Palm Beach, Fla.

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