By Editors of Power Engineering
Under the terms of the agreement, which have been unanimously approved by both CenterPoint Energy’s and Vectren’s boards of directors, Vectren shareholders will receive $72.00 in cash for each share of Vectren common stock.
The combined company will hold electric and natural gas delivery operations in eight states with assets totaling $29 billion and nearly 13,500 employees.
“This merger represents a significant step toward our vision to lead the nation in delivering energy, service and value. By combining our two highly complementary companies, we are creating an energy delivery, infrastructure and services leader that will drive value for our shareholders and customers, while enhancing growth opportunities for our businesses,” said Scott M. Prochazka, president and chief executive officer of CenterPoint Energy. “From the evolution of customer expectations to the development of innovative technologies, this is a time of extraordinary opportunity for our industry. As a combined company, we will continue to focus on a future that benefits our customers, employees, communities and shareholders.”
Vectren Chairman, President and Chief Executive Officer Carl L. Chapman said, “With CenterPoint Energy, we’ve found the right partner to begin the next chapter for Vectren and our family of companies. They share the same core values and dedication to the communities they serve, which is evidenced by the commitments they have made to our employees, philanthropic outreach, and Evansville, Ind., our home, where CenterPoint Energy will locate the newly combined company’s natural gas utility operations headquarters. Together, we will be a stronger, more competitive company that will be well-positioned to continue to provide value for our stakeholders in the years to come.”
The two companies said the merger will provide opportunities to expand competitive energy-related services across a larger footprint and create long-term efficiencies in the delivery of services to customers.
Centerpoint’s Prochazka will serve as president and CEO of the combined company, with a chief business officer for Vectren’s electric business to be named later. The sale is expected to close in the first quarter of 2019.