Fortis buying US electric transmission company for $11.3B
Adding ITC's high-voltage transmission lines in seven states to holdings.
ST. JOHN’S, NL — Fortis Inc. has a friendly deal to buy US electric transmission company ITC for US$11.3 billion.
ITC’s headquarters will remain in Novi, Mich., and all its employees will be retained to operate ITC as a stand-alone company within the Fortis group.
The deal involves a combination of cash and shares in Fortis, which is based in St. John’s, NL.
About 27% of Fortis total shares will be owned by ITC shareholders if the deal is completed as proposed.
Fortis will add ITC’s high-voltage transmission lines in seven states to holdings in several Canadian provinces, the US and elsewhere.
Fortis is offering US$22.57 in cash – about US$6.9 billion in total – and about three-quarters of a Fortis share for each ITC share. Fortis will also assume about US$4.4 billion of debt owed by ITC.
© 2016 The Canadian Press