Canadian utility Fortis Inc said it will purchase CH Energy Group Inc for about $1 billion in cash, to enter the U.S. state-regulated electric and gas distribution business that assures stable return.Fortis, which will also assume $500 million debt, will pay CH Energy shareholders $65 a share, representing a premium of 11 percent over Friday's close.Last November, Fortis had said it was looking to expand in the United States and could have as many U.S. assets as Canadian within 10 years.Fortis, which is being advised by Bank of America Merrill Lynch, said the deal will immediately add to its earnings, excluding one-time transaction costs.
Fortis Inc. (Fortis) is a distribution utility holding company. Shares of FTS remained unchanged at $32.85. In the past year, the shares have traded as low as $28.24 and as high as $34.39. On average, 576190 shares of FTS.TO exchange hands on a given day and today's volume is recorded at 0.
CH Energy Group, Inc. (CH Energy Group) is the holding company of Central Hudson Gas & Electric Corporation (Central Hudson) and Central Hudson Enterprises Corporation (CHEC). Shares of CHG remained unchanged at $58.77. In the past year, the shares have traded as low as $47.44 and as high as $59.74. On average, 53975 shares of CHG exchange hands on a given day and today's volume is recorded at 11600.
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