Southern Co. to Buy AGL Resources for $8 Billion
August 24 2015 - 7:13AM
Dow Jones News
By Chelsey Dulaney
Southern Co. has agreed to buy AGL Resources for about $8
billion, a deal that will create the second-largest utility company
in the U.S. by customer base.
Under the terms of the deal, AGL Resources' shareholders will
receive $66 in cash for each share held, a 38% premium to Friday's
closing price. Shares of both companies were inactive
premarket.
Including debt, the deal is valued at $12 billion. Both
companies' boards of directors have approved the deal.
The combined company will have around 9 million customers and 11
regulated electric and natural gas distribution companies.
"For some time we have expressed our desire to explore
opportunities to participate in natural gas infrastructure
development," said Southern Chief Executive Thomas A. Fanning in a
news release.
Southern expects the deal to add to its per-share earnings in
the first full year after closing.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
August 24, 2015 07:58 ET (11:58 GMT)
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