Aquila, Black Hills, Great Plains mergers approved in Kansas

By Lisa Kerner

Charlotte, N.C., March 10 - The Kansas Corporation Commission approved the proposed acquisition of Aquila Inc.'s natural gas utility assets in Kansas by Black Hills Corp.

In addition, the commission approved Great Plains Energy, Inc.'s proposed acquisition of Aquila.

Black Hills and Aquila have obtained all the necessary regulatory approvals required in Iowa, Nebraska, Kansas and Colorado.

Great Plains and Aquila need to obtain regulatory approval from the Missouri Public Service Commission.

As previously reported, Black Hills and Great Plains will each acquire portions of Aquila in separate transactions.

Black Hills will acquire Aquila's electric utility in Colorado, its gas utilities in Colorado, Kansas, Nebraska and Iowa and its associated liabilities for $940 million in cash immediately prior to Great Plains' acquisition of Aquila.

Great Plains will acquire all the outstanding shares of Aquila and its Missouri-based electric utility assets for $1.80 in cash plus 0.0856 of a share of Great Plains common stock for each share of Aquila common stock. The transaction, valued at $4.54 per share, or about $1.7 billion, includes the assumption of some $1 billion of Aquila's net debt.

Based in Kansas City, Mo., Aquila owns electric power generation assets and operates electric and natural gas transmission and distribution networks.

Black Hills is a diversified energy company based in Rapid City, S.D.

Great Plains is a Kansas City, Mo., holding company for Kansas City Power & Light and Strategic Energy, LLC.

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