Fortis Acquisition of UNS Energy Approved

By Joseph R. Fonseca
Wednesday, August 13, 2014
H. Stanley Marshall is Chief Executive Officer


Fortis Inc. and UNS Energy Corporation announced today the issuance of the final written approval by the Arizona Corporation Commission of the Corporation's agreement to acquire UNS Energy. As a result, all conditions precedent to completing the Acquisition have been fulfilled other than those which by their nature cannot be satisfied until the closing date, which is expected to occur upon completion of the required documentation.

Fortis will issue shortly a final instalment notice notifying holders of its 4% convertible unsecured subordinated debentures represented by instalment receipts of the date on which payment of the final instalment is due, which date shall be not less than 15 days nor more than 90 days thereafter.  Additional details will be set out in the Final Instalment Notice regarding, among other things, the right of holders of Debentures who have paid the final instalment to receive a make-whole payment and to convert their Debentures into Fortis common shares.

On December 11, 2013, Fortis and UNS Energy announced that Fortis had entered into an agreement and plan of merger to acquire UNS Energy for US$60.25 in cash per share, representing an aggregate purchase price of approximately US$4.3 billion, including the assumption of approximately US$1.8 billion of debt on closing.

UNS Energy is a vertically integrated utility services holding company, headquartered in Tucson, Arizona, engaged through three subsidiaries in the regulated electric generation and energy delivery business, primarily in the State of Arizona, serving approximately 657,000 electricity and gas customers.  UNS Energy's fiscal 2013 operating revenues totaled approximately US$1.5 billion and, as at June 30, 2014, UNS Energy had total assets of approximately US$4.5 billion.

"The Acquisition of UNS Energy is consistent with our strategy of investing in high-quality regulated Canadian and U.S. utility assets and is expected to be accretive to earnings per common share in the first full year after closing, excluding one-time Acquisition-related costs," says Stan Marshall, Chief Executive Officer ("CEO"), Fortis.  "The Acquisition further mitigates business risk for Fortis by enhancing the geographic diversification of our businesses, resulting in no more than one-third of the Corporation's total assets being located in any one regulatory jurisdiction," he explains.

"UNS Energy is a well-run utility whose employees, like those throughout the Fortis group, are committed to serving their customers and their communities," says Barry Perry, President, Fortis. 

"We welcome the employees of UNS Energy to the Fortis team, and we look forward to their contribution as we continue to meet our customers' energy needs safely, reliably and cost effectively," he adds.

"This transaction enhances the financial strength of our local utility operations, provides additional support for our long-term investments and ensures that customers immediately share in the financial benefits of this transaction," says David Hutchens, President and CEO, UNS Energy.  "The Fortis business model retains UNS Energy as a standalone company, and we remain steadfast in our commitment to meeting the energy needs of our existing and new customers.".

The Acquisition provides customers of UNS Energy subsidiaries Tucson Electric Power and UniSource Energy Services ("UES") with bill credits totalling US$10 million in the first year after the transaction is completed and US$5 million annually in years two through five.  Fortis also has agreed to invest US$220 million of equity into TEP and UES through UNS Energy. 

TEP and UES will remain headquartered in Tucson under local control with current management and staffing levels and no planned changes to existing operations.  The Acquisition also includes dividend limitations and other measures intended to protect each regulated utility and its customers.  UNS Energy will establish a board of directors comprised of a majority of independent members, most of whom are Arizona residents.


  •  Barry Perry, President, Fortis

    Barry Perry, President, Fortis

Maritime Today

The Maritime Industry's original and most viewed E-News Service

Maritime Reporter November 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds


Hoegh LNG Q3 Profits Disappoints

Oslo-listed Hoegh LNG, whose floating plants turn liquefied natural gas (LNG) into gas, reported on Monday third-quarter earnings below forecasts and offered a dividend of $0.

Torm Orders Four Tankers in $200 mln Deal

Danish shipping company Torm has signed an order for four fuel-efficient LR2 (long-range) product tanker vessels from Guangzhou Shipyard International in China for $200 million.

Europe-Bound Diesel Diverted to Asia

At least two tankers redirected to Singapore; Vitol floating storage vessel also heading East. Diesel cargoes which had planned to discharge in a heavily-supplied


Panama Canal Wait Times Back to Normal

Waiting times for ships at the Panama Canal have returned to normal after poor weather and a spike in traffic caused delays for several weeks, the waterway's operator said on Monday.

Passengers Transferred from Stranded Ferry

Passengers were transferred from Indonesia-registered Sea Prince after the ferry struck a floating object after leaving the Nongsapura ferry terminal in Batam late on November 29.

VT Halter Launches Barge for Bouchard

VT Halter Marine, Inc. (VT Halter Marine), a company of Vision Technologies Systems, Inc. (VT Systems) and Bouchard Transportation Co. announced that Barge B. No.

Mergers & Acquisitions

Groundbreaking Ceremony for Seaspan's Vancouver Office

Seaspan hosted a groundbreaking ceremony today to announce it has officially started construction on a new head office in North Vancouver. The 7,800 square metre (84,

Shipping to See Further Consolidation

The CMA CGM's move to buy Singapore’s Neptune Orient Lines (NOL), could lead to one of the biggest acquisitions in the shipping container industry in years.   If it goes through,

Alaska Buys TransCanada AK LNG Stake

The State of Alaska has finalized a deal with TransCanada to buy out the pipeline company's share in the proposed Alaska liquefied natural gas export project for nearly $65 million.

Maritime Careers / Shipboard Positions Maritime Security Navigation Offshore Oil Pipelines Pod Propulsion Port Authority Salvage Ship Simulators Shipbuilding / Vessel Construction
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.0979 sec (10 req/sec)