By Lisa Kerner
Charlotte, N.C., June 25 - Iberdrola SA agreed to acquire Energy East Corp. for $28.50 per share in cash in a transaction valued at $8.6 billion.
Both companies' boards of directors have approved the deal, which is expected to close in 2008.
"The combination with Energy East fits with the philosophy of our strategic plan [and] will serve to enhance the international expansion we initiated several years ago in markets with stable growth," Iberdrola chairman and chief executive officer Ignacio Galan said in a company news release.
"This transaction is a unique opportunity to deliver enhanced value to Energy East's shareholders and to build a stronger future for our company, employees and the states we serve," Energy East chairman and chief executive officer Wes von Schack added.
JPMorgan and Greenhill & Co. advised Energy East, with legal counsel from LeBoeuf, Lamb, Greene & MacRae.
Energy East is a utility company based in New Gloucester, Maine, and Iberdrola is a utility located in Bilbao, Spain.
| Acquirer: | Iberdrola SA
|
| Target: | Energy East Corp.
|
| Transaction total: | $8.6 billion
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| Price per share: | $28.50
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| Announcement date: | June 25
|
| Expected closing: | 2008
|
| Stock price for target: | NYSE: EAS: $22.27 on June 22
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