NextEra Energy will acquire 100 percent of the equity of the reorganized EFH and certain direct and indirect subsidiaries, including its 80 percent stake in Oncor. The definitive agreement will be filed immediately as part of EFH’s restructuring before the U.S. Bankruptcy Court for the District of Delaware. EFH can emerge from Chapter 11 bankruptcy once the court approves the agreement.
“We are pleased to have reached a definitive agreement to acquire EFH’s 80 percent indirect interest in Oncor,” said Jim Robo, chairman and chief executive officer of NextEra Energy. He went on to say Oncor would keep its name and stay headquartered in Dallas.
NextEra will fund $9.5 billion to repay EFIH’s debt. EFIH is not prohibited from soliciting proposals from third parties prior to the bankruptcy court’s approval of the NextEra deal. If EFH ends the agreement because it receives a better offer, EFH would have to pay NextEra Energy a $275 million termination fee. NextEra Energy expects the deal to be completed in the first quarter of 2017.
NextEra Energy recently ended merger plans with Hawaiian Electric Industries after the Hawaii Public Utilities Commission voted to dismiss the merger application.