CLINTON: Connecticut Water Service, Inc. [NASDAQ: CTWS] has rejected Eversource’s [NYSE: EV] offer and said it has received no new or revised offers for purchase of the company and will proceed with its planned merger with San Jose Group [NYSE: SJW].
For its part Eversource said that it was satisfied with its proposal to CTWS and would not revise it.
Connecticut Water and the SJW Group merger agreement was amended to include a new go-shop provision, which allowed Connecticut Water to actively solicit proposals for an alternative merger, acquisition or other strategic transactions.
According to Connecticut Water its “financial advisors directly contacted more than 50 parties, including more than 20 water and regulated utilities and more than 30 financial sponsors, to determine their interest in exploring a potential transaction with Connecticut Water.”
While there was some tire kicking, according to the company, “half of the contacted parties sought and received additional details", nothing besides kicking has come to pass.
As of June 17, 2018, no proposals or indications of interest have been received. The Company noted that Eversource Energy was among those contacted and invited to participate in the go-shop process; however, accoring to CTWS "Eversource did not participate in the process and did not submit a proposal for consideration."
CTWS Board chairwoman Carol Wallace said, "We are moving forward to seek approval from shareholders and regulators and look forward to completing our value-enhancing merger with SJW Group as planned."
The company again defended its rejection of Evesource’s proposal saying, “Eversource's inadequate, non-binding proposal significantly undervalues Connecticut Water. It is under market and provides less value to Connecticut Water shareholders than the SJW Group merger. In fact, Eversource's $63.50 per share proposal is below Connecticut Water's most recent closing stock price of $65.00 per share on June 15, 2018, and is below the Company's average daily closing stock price of $65.23 for the prior 30 trading days.”