CLINTON: The Connecticut Water Service [Nasdaq: CTWS] is moving forward with their merger plans with its cross-country transaction with the San Jose Water Company [NYSE: SWJ] as its rejects Eversource’s [NYSE: EV] most recent revised offer.
The revised Eversource, offer of $64 a share, is up marginally from $63.50 in April, but also includes increases if the merger is slow in receiving approval from regulators.
CTWS submitted a new application for the approval of their merger of equals, with the Connecticut Public Utilities Regulatory Authority (“PURA”) on July 18.
Connecticut Water has said that, the Eversource offer is “less than the $64.72 per share that would be realized in the SJW merger”. It has put forward a price that it would take from Eversource of $69.50 per share, approximately $50 million more than the value of Eversource's most recent offer of approximately $750 million.
CTWS is seeking regulatory approval to close the sale by the end of 2018. Everosurce statements have questioned whether the cross country merger will be approved by regulators in Connecticut.
Connecticut Water is more confident, “we are pleased to be moving forward with the regulatory approval process,” said David C. Benoit, CEO. , “We are eager to demonstrate to our regulators the clear benefits of the merger for our customers, employees and communities that can be realized through the sharing of best practices, operational expertise and resources of the combined company. Through the merger, we will have the unique benefit of being able to maintain our presence and locally-based teams of water professionals in Connecticut and Maine to deliver safe, reliable water service in our communities while being part of a larger, stronger national organization.”