SJW Group (SJW) said that it is committed to the existing merger agreement with Connecticut Water Service Inc. (CTWS), which remains on track to close by year-end 2018. The SJW Group Board continues to believe the merger of equals provides the shareholders of both companies with the best opportunity for value creation over the long term.
SJW Group issued the statement regarding Connecticut Water Service, Inc.’s receipt and rejection of an unsolicited, non-binding indication of interest from Eversource Energy (ES) regarding a potential proposal to acquire Connecticut Water.
Earlier today, Connecticut Water Service confirmed that after it entered into a definitive merger agreement with SJW Group, the Company received a non-binding, unsolicited acquisition proposal from Eversource Energy (ES) for $63.50 per share in cash and/or in Eversource common stock at the election of Connecticut Water shareholders.
As per the terms of the SJW Group merger agreement, Connecticut Water’s Board of Directors reviewed Eversource’s unsolicited acquisition proposal and today unanimously concluded that it is not a superior proposal or reasonably likely to lead to a superior proposal as defined by Connecticut Water’s merger agreement with SJW Group.
As previously announced on March 15, under the terms of the SJW Group agreement, Connecticut Water shareholders will receive 1.1375 shares of SJW Group common stock for each share of Connecticut Water common stock they own, the equivalent of $63.70 per share based on SJW Group’s closing share price on April 19, 2018. Following the closing of the transaction, Connecticut Water shareholders will own approximately 40 percent of the combined company and SJW Group shareholders will own approximately 60 percent, on a fully diluted basis.
The Connecticut Water Board of Directors continues to unanimously believe that the merger with SJW Group is in the best interest of all Connecticut Water shareholders, with significant long-term benefits for the Company’s customers, employees and communities.
by RTTNews Staff Writer
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