Spanish power firm Iberdrola has reached an agreement to acquire US gas and power utility Energy East in a deal worth €3.4 billion.
The transaction was financed through the issuance of some 85 million new shares, representing approximately 7% of existing capital worth close to the transaction price.
Energy East operates distribution, generation and supply businesses across five northeastern states of New York, Maine, Massachusetts, New Hampshire and Connecticut.
This friendly transaction values Energy East at a premium of 20.2%, which when added to a debt of €3 billion gives Energy East an enterprise value of €6.4 billion.
Energy East has 1,825,000 electric customers, a transmission network of 13,243 km and 125,613 km in distribution, and a generation capacity of 555 MW. It also has 920,300 gas customers, a 39,657 km distribution network and a gas transport network of 295 km.
The acquisition is expected to be completed during 2008.
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