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United Illuminating, Fairfield's Power Supplier, Sold To Spanish Firm

FAIRFIELD, Conn. -- Electricity provider United Illuminating, whose service area includes Bridgeport, Easton and Fairfield, will be acquired by Iberdola USA in a deal announced Thursday.

United Illuminating will be acquired by Iberdola USA, it was announced on Thursday.

United Illuminating will be acquired by Iberdola USA, it was announced on Thursday.

Photo Credit: Facebook/United Illuminating

Iberdola will acquire UIL Holdings in $3 billion deal that also includes Southern Connecticut Gas, Connecticut Natural Gas and Berkshire Gas. Iberdola's properties include New York State Electric & Gas, Rochester Gas & Electric and Central Maine Power.

Iberdola is the leading electrical and gas company in Spain. It also has subsidiaries in Scotland and Brazil.

The combined entity will have a rate base of $8.3 billion and expects to invest $6.9 billion in regulated electric and gas infrastructure and other capital expenditures over the next five years. The combined company will serve 3.1 million electric and gas customers in New York, Connecticut, Maine and Massachusetts.

UI President and Chief Executive Officer James P. Torgerson will become CEO of the combined company and will select and lead a U.S.-based leadership team from among the UIL and Iberdrola USA business leadership. Iberdrola and UIL will continue to have offices in New Haven as well as in Massachusetts, Maine and New York.

“Iberdrola is an ideal long-term partner for our customers, our employees and the communities we serve,” Torgerson said. “We will be a more diversified and stronger utility as a group with greater scale and financial resources to support continued investment in system reliability and infrastructure projects to ensure customers continue to receive the safe, reliable and cost-efficient service that they have come to expect from our top-performing companies.."

The proposed transaction implies total value per share to UIL shareholders of $52.75, including $10.50 per share paid in the form of cash, representing a 24.6 percent premium to UIL’s closing share price on Wednesday, and a 19.3 percent premium to the average closing price over the past 30 days.

 

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