Energy West opposed to merger of Florida Public Utilities, Chesapeake

By Lisa Kerner

Charlotte, N.C., April 24 - Florida Public Utilities Co. shareholder Energy West, Inc. said it was disappointed to learn that Florida agreed to merge with Chesapeake Utilities Corp.

Energy West made its comments in a Thursday letter to Florida included in a schedule 13D/A filed on Friday with the Securities and Exchange Commission.

According to Energy West, it may have increased its April 10 offer for Florida had it known about the company's negotiations with Chesapeake.

Energy West offered to acquire Florida for $12.00 per share, or $73.4 million.

Chesapeake agreed to acquire Florida in an all-stock transaction valued at approximately $74.0 million, it was announced on Monday. Florida shareholders will receive 0.405 shares of Chesapeake common stock for each share of Florida they hold.

The transaction has an approximate value of $12.20 per Florida share based on the average of Chesapeake's closing stock price the 15 trading days prior to April 15, Chesapeake said.

Energy West said it believes its offer, which Florida did not respond to, "compares favorably to the Chesapeake offer."

"Based on our understanding of the process that the board followed and the information that is available regarding the Chesapeake offer, we expect to vote 'no' on the proposed merger with Chesapeake and may determine in the future to encourage others to vote 'no' as well," Energy West said in the letter.

Energy West beneficially owns 344,074 shares, or 5.6%, of Chesapeake, a Dover, Del.-based diversified utility company.

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.

Energy West is a Great Falls, Mont., natural gas, propane and energy marketing company.

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