November 21, 2007
Energy East shareholders approve buyout
Shareholders of Energy East, the parent company of Central Maine Power Co., on Tuesday overwhelmingly approved a $4.5 buyout by Spanish power company Iberdrola S.A., according to a press release.
Under the deal, Energy East, based in New Gloucester, will become a wholly owned subsidiary of Bilbao, Spain-based Iberdrola. Approximately 93% of Energy East's shareholders, who will receive $28.50 in cash for each share of Energy East common stock they own, approved the buyout. Shares of Energy East, which sells power to roughly 3 million customers in New England and New York, dipped slightly in midday trading to $27.45. Energy East recently reported net income of $177.8 million for the nine months ending Sept. 30.
The deal remains subject to state and federal regulatory approvals, but Energy East expects the acquisition to be complete in the first half of 2008.
Under the deal, Energy East, based in New Gloucester, will become a wholly owned subsidiary of Bilbao, Spain-based Iberdrola. Approximately 93% of Energy East's shareholders, who will receive $28.50 in cash for each share of Energy East common stock they own, approved the buyout. Shares of Energy East, which sells power to roughly 3 million customers in New England and New York, dipped slightly in midday trading to $27.45. Energy East recently reported net income of $177.8 million for the nine months ending Sept. 30.
The deal remains subject to state and federal regulatory approvals, but Energy East expects the acquisition to be complete in the first half of 2008.
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