Following last week's positive endorsement by Public Service Enterprise Group shareholders, Exelon Corporation shareholders have comprehensively added their voices in support of the $16 billion merger of the two energy companies.
Having secured the backing of shareholders, Exelon and Public Service Enterprise Group (PSEG) will now move forward their merger plan. The merger agreement, which will create the largest utility in the US, will now go before the New Jersey Board of Public Utilities and Pennsylvania Public Utility Commission to be evaluated for regulatory approval.
Exelon announced the shareholder approval at its annual meeting in Philadelphia. Each share of PSEG stock will be converted into 1.225 shares of Exelon stock upon completion of the merger. Exelon shareholders voted to approve the issuance of new shares of common stock, with approximately 98% of votes cast in favor.
Exelon has more than 130,000 shareholders in the states served by ComEd, PECO and PSE&G, said John Rowe, chairman, president and CEO of Exelon. Our shareholders – many of whom are also customers – have spoken, and their votes indicate that they support the merger by an overwhelming margin. It will provide positive benefits to them, to our employees and to our customers.
PSEG shareholders voted on Tuesday to approve the merger, which is expected to occur in the first quarter or early in the second quarter of 2006, pending regulatory approvals.