US - A consortium of long-term infrastructure investors, including the Canada Pension Plan Investment Board (CPPIB), has filed an application with the Washington Utilities and Transportation Commission (WUTC) to request its approval in connection with the $7.4bn proposed merger of utility company, Puget Sound Energy (PSE) announced on 26 October 2007.
The consortium has agreed to acquire all of the outstanding shares of PSE parent company, Puget Energy for $30.00 per share in cash.
Stephen Reynolds, chairman, president and chief executive officer of Puget Energy and Puget Sound Energy, said: "We're taking the necessary steps to move forward with the merger by preparing and filing the requisite applications and materials to receive regulatory approval.
"We've made significant progress in the last few weeks to get us to this milestone of seeking approval from the WUTC."
On 3 December, Puget Energy completed the sale to the consortium of 12.5m shares for an aggregate offering price of approximately $296m.
Under the terms of the merger agreement, Puget Energy had the right to solicit other acquisition proposals before 10 December 2007. Reynolds noted that no superior proposal was received during the allotted time.
"The results of the go-shop process have helped to confirm that partnering with the consortium comprised of committed and experienced long-term infrastructure investors will provide the best end result for our shareholders, customers, employees and the communities we serve in Western Washington," said Reynolds.
Puget Energy and the consortium planns to submit filings with Federal Energy Regulatory Commission, the Federal Communications Commission, the Federal Trade Commission, and US Department of Justice (under the Hart-Scott-Rodino Act) within the next few months.
Puget Energy expected to hold its shareholder vote on the merger on a date to be determined after the Securities and Exchange Commission review of the preliminary proxy statement related to the merger.
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