Emera Acquisition of TECO Energy Approved by New Mexico Public Regulation Commission
Emera Inc. (“Emera”) (TSX: EMA) and TECO Energy, Inc. (“TECO Energy”)
(NYSE:TE) today announced that the New Mexico Public Regulation
Commission (“NMPRC”) voted unanimously to approve a Final Order
authorizing, among other things, Emera’s proposed acquisition of TECO
Energy and the indirect acquisition of New Mexico Gas Company, Inc.
(“NMGC”) (“Acquisition”).
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“We are pleased that the New Mexico Public Regulation Commission has
voted unanimously to approve the Acquisition and we appreciate the
significant contributions by all parties who participated in the
process, which only through those efforts, allowed us to reach this
successful conclusion,” said Chris Huskilson, President and CEO of Emera
Inc. “We look forward to our future in New Mexico and supporting the New
Mexico Gas Company’s work in serving its customers and communities. We
are excited about the many growth opportunities we see in both New
Mexico and Florida.”
We are awaiting the filing of the NMPRC’s written order. That filing
will complete the final required regulatory approval and accordingly,
all conditions precedent to completing the Acquisition will have been
fulfilled other than the customary closing conditions. The transaction
closing is expected to occur on or about July 1st, 2016.
Emera will issue on or prior to the closing date a final instalment
notice (the “Final Instalment Notice”) notifying holders of its 4%
convertible unsecured subordinated debentures (“Debentures”) represented
by instalment receipts of the date on which payment of the final
instalment is due, which date shall be not less than 15 days nor more
than 90 days after the date of the Final Instalment Notice in accordance
with the terms of the instalment receipts. Additional details will be
set out in the Final Instalment Notice regarding, among other things,
the right of holders of Debentures who have paid the final instalment to
receive a make-whole payment and to convert their Debentures into Emera
common shares.
About TECO Energy, Inc.
TECO Energy Inc. (NYSE:TE) is an energy-related holding company with
regulated electric and gas utilities in Florida and New Mexico. Tampa
Electric serves nearly 725,000 customers in West Central Florida;
Peoples Gas serves nearly 365,000 customers across Florida; and New
Mexico Gas Co. serves more than 515,000 customers across New Mexico.
About Emera Inc.
Emera Inc. is a geographically diverse energy and services company
headquartered in Halifax, Nova Scotia with approximately $11.5 billion
in assets and 2015 revenues of $2.79 billion. The company invests in
electricity generation, transmission and distribution, as well as gas
transmission and utility energy services with a strategic focus on
transformation from high carbon to low carbon energy sources. Emera has
investments throughout northeastern North America, and in four Caribbean
countries. Emera continues to target having 75-85% of its adjusted
earnings come from rate-regulated businesses. Emera’s common and
preferred shares are listed on the Toronto Stock Exchange and trade
respectively under the symbol EMA, EMA.PR.A, EMA.PR.B, EMA.PR.C,
EMA.PR.E, and EMA.PR.F and instalment receipts are listed and trade
under the symbol EMA.IR. Depositary receipts representing common shares
of Emera are listed on the Barbados Stock Exchange under the symbol
EMABDR. Additional Information can be accessed at www.emera.com
or at www.sedar.com.
Forward Looking Information
This news release contains forward-looking information within the
meaning of applicable securities laws with respect to, among other
things, the completion of the acquisition of TECO Energy. Important
factors that could cause actual performance and results to differ
materially from those indicated by any such forward-looking statements
include risks and uncertainties relating to the following: (i) the risk
that other conditions to the closing of the proposed acquisition may not
be satisfied; and (ii) the timing to consummate the acquisition. There
can be no assurance that the proposed acquisition will be completed, or
if it is completed, that it will close within the anticipated time
period. These factors should be considered carefully, and undue reliance
should not be placed on the forward-looking statements. By its nature,
forward-looking information requires the use of assumptions and is
subject to inherent risks and uncertainties. These statements reflect
Emera’s and TECO Energy’s current beliefs and are based on information
currently available to them. There is risk that predictions, forecasts,
conclusions and projections that constitute forward-looking information
will not prove to be accurate, that the assumptions may not be correct
and that actual results may differ materially from such forward-looking
information. Additional detailed information about these assumptions,
risks and uncertainties is included in (i) Emera’s securities regulatory
filings, including under the heading “Business Risks and Risk
Management” in Emera’s annual Management Discussion and Analysis, and
under the heading “Principal Risks and Uncertainties” in the notes to
Emera’s annual and interim financial statements which can be found on
SEDAR at www.sedar.com
and (ii) under the heading “Risk Factors” in TECO Energy’s Annual Report
on Form 10-K for the year ended December 31, 2015, as updated in
subsequent filings with the U.S. Securities and Exchange Commission.
Except as required by law, Emera and TECO Energy disclaim any intention
or obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.
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