Emera Closes Acquisition of TECO Energy
01 July 2016 - 10:50PM
Business Wire
Emera Inc. (“Emera”) (TSX:EMA) today announced that it has
completed the acquisition of all outstanding shares of TECO Energy,
Inc. (“TECO Energy”) for approximately US$6.5 billion
(“Acquisition”).
TECO Energy is a perfect fit for Emera’s strategy due to its
business and generation mix. It expands Emera’s platform into
markets where there are significant growth opportunities, and is
expected to increase the portion of Emera’s earnings from
rate-regulated businesses to almost 85 percent of adjusted net
income. With this acquisition, Emera becomes a top 20 North
American regulated utility with added geographic, regulatory and
business diversification.
The Acquisition is expected to be significantly accretive to
Emera’s earnings per common share, with 5 percent accretion in the
first full year of operations (2017)1, growing to more than 10
percent by the third full year (2019)1.
“The acquisition of TECO Energy advances a number of important
strategic objectives for Emera,” said Chris Huskilson, President
and CEO of Emera Inc. “We expect it to be significantly accretive,
increase our regulated earnings into the high end of our target
range, provide additional diversification and growth opportunities,
and expand Emera into the local gas distribution business.”
As part of Emera’s commitment to the customers and communities
in which it operates, operating boards will be established in
Florida and New Mexico, with local business and community leaders
on both boards. Tampa Electric and Peoples Gas headquarters will
remain in Tampa, Florida. New Mexico Gas Co. headquarters will
remain in Albuquerque, New Mexico.
“At Emera, our people are our greatest strength. Today, we
welcome 3,700 new colleagues from across TECO into the Emera
family. We are stronger together,” said Huskilson.
Tampa Electric serves nearly 725,000 customers in West Central
Florida; Peoples Gas serves nearly 365,000 customers across
Florida; and New Mexico Gas Co. serves more than 515,000 customers
across New Mexico.
As a result of the closing of the Acquisition, trading of TECO
Energy, Inc. common stock on the New York Stock Exchange will be
suspended, and these shares will no longer be listed on The New
York Stock Exchange. TECO Energy, Inc. shareholders will receive
US$27.55 per share.
About Emera Inc.
Emera Inc. is a geographically diverse energy and services
company headquartered in Halifax, Nova Scotia with approximately
$27.5 billion in assets and 2015 pro-forma revenues of $ 6.3
billion. The company invests in electricity generation,
transmission and distribution, gas transmission and distribution,
and utility energy services with a strategic focus on
transformation from high carbon to low carbon energy sources. Emera
has investments throughout North America, and in four Caribbean
countries. Emera continues to target having 75-85% of its adjusted
earnings come from rate-regulated businesses. Emera’s common and
preferred shares are listed on the Toronto Stock Exchange and trade
respectively under the symbol EMA, EMA.PR.A, EMA.PR.B, EMA.PR.C,
EMA.PR.E, and EMA.PR.F and instalment receipts are listed and trade
under the symbol EMA.IR. Depositary receipts representing common
shares of Emera are listed on the Barbados Stock Exchange under the
symbol EMABDR. Additional Information can be accessed at
www.emera.com or at www.sedar.com
Forward Looking Information
This news release contains forward-looking information within
the meaning of applicable securities laws with respect to the
combined operations of Emera and TECO Energy post-Acquisition,
including, among other things, statements relating to growth and
diversification opportunities, increased earnings from
rate-regulated businesses, earnings per share accretion and
stakeholders commitments. By its nature, forward-looking
information requires the use of assumptions and is subject to
inherent risks and uncertainties. These statements reflect Emera’s
current beliefs and are based on information currently available to
it. There is risk that predictions, forecasts, conclusions and
projections that constitute forward-looking information will not
prove to be accurate, that the assumptions may not be correct and
that actual results may differ materially from such forward-looking
information. Additional detailed information about these
assumptions, risks and uncertainties is included in (i) Emera’s
securities regulatory filings, including under the heading
“Business Risks and Risk Management” in Emera’s annual Management
Discussion and Analysis, and under the heading “Principal Risks and
Uncertainties” in the notes to Emera’s annual and interim financial
statements which can be found on SEDAR at www.sedar.com and (ii)
under the heading “Risk Factors” in TECO Energy’s Annual Report on
Form 10-K for the year ended December 31, 2015, as updated in
subsequent filings with the U.S. Securities and Exchange
Commission. Except as required by law, Emera disclaims any
intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise.
1 Within a stable currency exchange environment; for additional
assumptions, see “Forward Looking Information”
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version on businesswire.com: http://www.businesswire.com/news/home/20160701005463/en/
Emera:Investor Relations:Scott LaFleur,
902-428-6375scott.lafleur@emera.comorMedia:Neera Ritcey,
902-222-2683neera.ritcey@emera.com
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