Entergy Corp said it will divest and merge its electric transmission business with ITC Holdings Corp as the second-largest operator of nuclear power plants in the United States looks to cut debt. Entergy expects to receive cash proceeds of $1.78 billion.Under the terms of the deal, Entergy will divest its electric transmission business to a newly-formed company, Mid South TransCo, and distribute it to its shareholders in the form of a tax-free spin-off.Transco will then merge with and into a newly created merger subsidiary of ITC in an all-stock, Reverse Morris Trust transaction.
ITC Holdings Corp. (ITC Holdings) is engaged in the electric transmission operations of its Regulated Operating Subsidiaries, which include International Transmission Company (ITCTransmission), Michigan Electric Transmission Company (METC), ITC Midwest LLC (ITC Midwest) and ITC Great Plains, LLC (ITC Great Plains). Shares of ITC remained unchanged at $73.78. In the past year, the shares have traded as low as $59.77 and as high as $78.89. On average, 365524 shares of ITC exchange hands on a given day and today's volume is recorded at 0.
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