Green Mountain Power announced that the Vermont Public Service Board or PSB approved a combination of Green Mountain Power and Central Vermont Public Service (CV: Quote).
The PSB said the merger would benefit customers and be in the public good. A formal closing is expected in late June.
The combined utility will provide other important features for customers and Vermont. It will transfer 38 percent of its ownership in VELCO to a public trust, ensuring that ownership and control of VELCO will remain with Vermont entities.
The Green Mountain Power said the PSB approval incorporates the agreement that GMP reached with the Vermont Department of Public Service that increased the benefits to Vermonters from $144 million to $177 million by providing more benefits to customers sooner than originally proposed.
In July 2011, Central Vermont Public Service said it has signed a definitive agreement to sell itself to Quebec's natural gas distributor Gaz Métro Ltd. Partnership (GZM_UN.TO: Quote). The sale would lead to the combination of Central Vermont and Green Mountain Power Corp., a unit of Gaz Métro.
Central Vermont had said that the all-cash deal would provide its shareholders $35.25 per share, a 45 percent premium over the closing price of $24.32 immediately prior to the announcement of its previous agreement with Fortis Inc. (FTS.TO: Quote). Fortis had offered $35.10 per share. The Central Vermont board had said it terminated the agreement with Fortis, stating Gaz Métro's offer was "superior".
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by RTT Staff Writer
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