Fortis To Acquire UNS Energy Corp. For US$4.3 Bln - Quick Facts

(RTTNews) - Fortis Inc. (FTS.TO) announced that it has entered into an agreement and plan of merger to acquire UNS Energy Corporation (UNS) for US$60.25 per common share in cash, representing an aggregate purchase price of about US$4.3 billion, including the assumption of approximately US$1.8 billion of debt on closing.

The company said the closing of the Acquisition, which is expected to occur by the end of 2014, is subject to receipt of UNS Energy common shareholder approval and certain regulatory and government approvals, including approval by the Arizona Corporation Commission, Federal Energy Regulatory Commission and compliance with any applicable requirements under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the satisfaction of customary closing conditions.

Commenting on UNS Energy, Fortis stated that it is a vertically integrated utility services holding company, headquartered in Tucson, Arizona, engaged through three subsidiaries in the regulated electric generation and energy delivery business, primarily in the State of Arizona.

Following the Acquisition, based on pro forma financial information as at September 30, 2013, total assets of Fortis will increase by approximately 33.5% to approximately $23.5 billion and regulated utility assets will comprise approximately 92% of total assets. Regulated assets in Canada and the United States will comprise approximately 55% and 34%, respectively, of total assets. The Corporation's consolidated rate base is expected to increase by approximately US$3 billion at the time of closing of the Acquisition.

Following the Acquisition, Fortis utilities will serve more than 3,000,000 electricity and gas customers.