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Great Plains, Aquila expect merger approval from Kansas following settlement
By Lisa Kerner
Charlotte, N.C., Feb. 28 - Great Plains Energy Inc. reached a settlement agreement with the Kansas Corporation Commission in regards to its proposed acquisition of Aquila, Inc.
In addition, Great Plains submitted a revised proposal to the Missouri Public Service Commission that accelerates net customer benefits.
On Feb. 21, Great Plains, Aquila and the Kansas City Power & Light Co. requested that the Missouri Public Service Commission resume hearings related to the merger on April 21 due to contractual deadlines in the merger agreement.
As previously reported, Black Hills Corp. and Great Plains will each acquire portions of Aquila in separate transactions.
Black Hills will acquire Aquila's electric utility in Colorado, its gas utilities in Colorado, Kansas, Nebraska and Iowa and its associated liabilities for $940 million in cash immediately prior to Great Plains' acquisition of Aquila.
Great Plains will acquire all the outstanding shares of Aquila and its Missouri-based electric utility assets for $1.80 in cash plus 0.0856 of a share of Great Plains common stock for each share of Aquila common stock. The transaction, valued at $4.54 per share, or about $1.7 billion, includes the assumption of some $1 billion of Aquila's net debt.
Final regulatory approvals for both transactions are still needed in Kansas and Missouri.
Based in Kansas City, Mo., Aquila owns electric power generation assets and operates electric and natural gas transmission and distribution networks.
Black Hills is a diversified energy company based in Rapid City, S.D.
Great Plains is a Kansas City, Mo., holding company for Kansas City Power & Light and Strategic Energy, LLC.
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