HALIFAX, Nova Scotia--(BUSINESS WIRE)--
Emera Inc. (“Emera”) (TSX:EMA) today announced that it has completed the
acquisition of all outstanding shares of TECO Energy, Inc. (“TECO
Energy”) for approximately US$6.5 billion (“Acquisition”).
TECO Energy is a perfect fit for Emera’s strategy due to its business
and generation mix. It expands Emera’s platform into markets where there
are significant growth opportunities, and is expected to increase the
portion of Emera’s earnings from rate-regulated businesses to almost 85
percent of adjusted net income. With this acquisition, Emera becomes a
top 20 North American regulated utility with added geographic,
regulatory and business diversification.
The Acquisition is expected to be significantly accretive to Emera’s
earnings per common share, with 5 percent accretion in the first full
year of operations (2017)1, growing to more than 10 percent
by the third full year (2019)1.
“The acquisition of TECO Energy advances a number of important strategic
objectives for Emera,” said Chris Huskilson, President and CEO of Emera
Inc. “We expect it to be significantly accretive, increase our regulated
earnings into the high end of our target range, provide additional
diversification and growth opportunities, and expand Emera into the
local gas distribution business.”
As part of Emera’s commitment to the customers and communities in which
it operates, operating boards will be established in Florida and New
Mexico, with local business and community leaders on both boards. Tampa
Electric and Peoples Gas headquarters will remain in Tampa, Florida. New
Mexico Gas Co. headquarters will remain in Albuquerque, New Mexico.
“At Emera, our people are our greatest strength. Today, we welcome 3,700
new colleagues from across TECO into the Emera family. We are stronger
together,” said Huskilson.
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.
As a result of the closing of the Acquisition, trading of TECO Energy,
Inc. common stock on the New York Stock Exchange will be suspended, and
these shares will no longer be listed on The New York Stock Exchange.
TECO Energy, Inc. shareholders will receive US$27.55 per share.
About Emera Inc.
Emera Inc. is a geographically diverse energy and services company
headquartered in Halifax, Nova Scotia with approximately $27.5 billion
in assets and 2015 pro-forma revenues of $ 6.3 billion. The company
invests in electricity generation, transmission and distribution, gas
transmission and distribution, and utility energy services with a
strategic focus on transformation from high carbon to low carbon energy
sources. Emera has investments throughout 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 the combined
operations of Emera and TECO Energy post-Acquisition, including, among
other things, statements relating to growth and diversification
opportunities, increased earnings from rate-regulated businesses,
earnings per share accretion and stakeholders commitments. By its
nature, forward-looking information requires the use of assumptions and
is subject to inherent risks and uncertainties. These statements reflect
Emera’s current beliefs and are based on information currently available
to it. 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.comand (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 disclaims any intention or obligation
to update or revise any forward-looking statements, whether as a result
of new information, future events or otherwise.
1 Within a stable currency exchange environment; for
additional assumptions, see “Forward Looking Information”
View source version on businesswire.com: http://www.businesswire.com/news/home/20160701005463/en/
Emera:
Investor Relations:
Scott LaFleur, 902-428-6375
scott.lafleur@emera.com
or
Media:
Neera
Ritcey, 902-222-2683
neera.ritcey@emera.com
Source: Emera Inc.