The merger between Iberdrola USA and UIL Holdings which is consistent with Iberdola's stragetic plan of expanding its prescence in the US, and enhancing currency diversification and its regulatory profile, will make the combined company one of the largest utilities and the 2nd largest wind operator company in the US.
UIL Holdings is the parent company for The United Illuminating Company, The Southern Connecticut Gas Company, Connecticut Natural Gas Corporation, and The Berkshire Gas Company, while Iberdola's current US companies include Central Maine Power Company, Maine Natural Gas Corp., New York State Electric & Gas Corp., and Rochester Gas and Electric Corp.
The merger is a friendly transaction between the boards of directors of Iberdrola S.A., Iberdrola USA and, UIL Holdings, and was recommended by UIL's board of directors. It will allow UIL shareholders to receive 18.5% of the share capital of the combined company plus $597 million in cash, representing a premium of 19.5% over the average UIL share price during the 30 days prior to February 25.
The combined company will have a 2014 pro forma EBITDA of approximately $2 billion, net income of $570 million, 3.1 million of points of supply, around 6.7 GW of installed capacity. As a result, Iberdrola USA will be present in the states of Connecticut, Massachusetts, New York, Maine as well as another 20 states.
It is unclear how the merger will affect operations at this time but stay tuned with Utility Fleet eNews as we follow the merger.