Aquila, Great Plains file for antitrust clearance in proposed merger

By Lisa Kerner

Charlotte, N.C., July 27 - Aquila, Inc. and Great Plains Energy Inc. filed for antitrust clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 as part of their merger agreement. The companies expect the 30-day initial waiting period to expire on Aug. 27, according to a company news release.

Under the agreement, Great Plains Energy will acquire all of the outstanding shares of Aquila in a stock-and-cash transaction valued at $1.7 billion including debt. Aquila shareholders will receive $1.80 in cash plus 0.0856 of a share of Great Plains Energy common stock for each share of Aquila common stock they hold.

The closing of the Great Plains acquisition is conditioned upon the completion of the sale of Aquila's Colorado, Iowa, Kansas and Nebraska operations to Black Hills Corp.

As previously reported, Black Hills will acquire Aquila's electric and gas utilities in those states for $940 million in cash immediately prior to Great Plains Energy's acquisition of Aquila.

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

Great Plains Energy is a Kansas City, Mo., holding company for Kansas City Power & Light and Strategic Energy, LLC. Black Hills is a diversified energy company based in Rapid City, S.D.

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