ITC Holdings Agrees To Be Bought By Canada's Fortis In $11.3 Bln Deal

(RTTNews) - ITC Holdings Corp. (ITC), an electricity transmission company, announced Tuesday that it has entered into an agreement and plan of merger to be acquired by Canadian electric and gas utility company Fortis Inc. (FTS.TO) in a transaction valued at approximately $11.3 billion.

Under the terms of the transaction, ITC shareholders will receive $22.57 in cash and 0.7520 Fortis shares per ITC share.

The per share consideration represents a premium of 33% over ITC's unaffected closing share price on November 27, 2015.

Following the acquisition, Fortis would be one of the top 15 North American public utilities ranked by enterprise value, with an estimated enterprise value of C$42 billion or $30 billion.

In connection with the acquisition, Fortis will apply to list its common shares on the NYSE.

Separately, Fortis announced that its Board of Directors has accepted the resignation of PaulBonavia as a director.