Fortis Utility Group To Acquire UNS Energy For About $4.3 Bln - Quick Facts

(RTTNews) - The Board of Directors of UNS Energy Corp. (UNS) Wednesday approved a definitive merger agreement with Fortis, Inc. (FTS.TO), wherein Fortis will acquire UNS Energy for an all cash offer of $4.3 billion or $60.25 per share.

Fortis Utility Group is a gas and electric distribution utility based in Canada. Fortis' financial strength will improve UNS Energy's access to capital to fund the ongoing diversification of its generating fleet as well as other infrastructure investments. The transaction also includes the assumption of approximately $1.8 billion in debt.

Additionally, the transaction provides additional capital and new resources for UNS Energy's subsidiaries, including Tucson Electric Power and UniSource Energy Services. Both companies will remain headquartered in Tucson under local control with current management and staffing levels and no planned changes to existing operations or rates.

Upon closing, Fortis will inject $200 million into UNS Energy to strengthen its balance sheet and help fund the planned purchase of Unit 3 at the natural gas-fired Gila River Power Plant, a transaction that will reduce TEP's reliance on coal-fired power.

"Joining the Fortis family will provide UNS Energy with new financial strength, helping us maintain safe, reliable and affordable service for our utility customers as we address the capital-intensive challenges facing our industry," said Paul Bonavia, UNS Energy's Chairman and CEO.

"The addition of UNS Energy to Fortis enhances UNS Energy's ability to deliver safe, reliable, cost-effective energy service to its customers," said Stan Marshall, President and CEO of Fortis.