Emera Inc. and TECO Energy, Inc. announced a definitive agreement for Emera to acquire TECO Energy, creating a North American energy leader, with over USD 20 billion of assets and more than 2.4 million electric and gas customers. Upon closing, TECO Energy will become a wholly owned subsidiary of Emera.
Under the terms of the all-cash deal, which has been unanimously approved by the Board of Directors of both companies, TECO Energy shareholders will receive USD 27.55 per common share, a 48 per cent premium based on TECO Energy's unaffected closing stock price on July 15, 2015 (the last trading day prior to news reports regarding TECO Energy's strategic review) and 25 per cent above TECO Energy's unaffected 52-week high. This represents an aggregate purchase price of approximately USD 10.4 billion including assumption of approximately USD 3.9 billion of debt.
The closing of the Transaction, which is expected to occur by mid-2016, is subject to TECO Energy common shareholder approval and certain regulatory and government approvals, including approval by the New Mexico Public Regulation Commission, the Federal Energy Regulatory Commission and compliance with any applicable requirements under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the satisfaction of customary closing conditions.