06:41:13 EDT Fri 29 Mar 2024
Enter Symbol
or Name
USA
CA



Fortis Inc
Symbol FTS
Shares Issued 283,118,840
Close 2016-06-22 C$ 41.72
Market Cap C$ 11,811,718,005
Recent Sedar Documents

Fortis's acquisition of ITC okayed by ITC shareholders

2016-06-22 16:34 ET - News Release

Mr. Barry Perry reports

ITC SHAREHOLDERS APPROVE FORTIS INC. ACQUISITION OF ITC HOLDINGS CORP.

At the ITC Holdings Corp. special meeting of shareholders held today in Novi, Mich., shareholders approved the acquisition of ITC by Fortis Inc.

"We are very pleased with the solid support from our shareholders for this transformative transaction," said Joseph L. Welch, chairman, president and chief executive officer of ITC. "Fortis is an outstanding company with a proven track record of successfully acquiring and managing U.S.-based utilities in a decentralized manner. This transaction accomplishes our objectives by better positioning the company to fulfill our long-term strategy of investing in transmission opportunities that improve reliability, expand access to power markets and allow new generating resources to interconnect to transmission systems while lowering the overall cost of delivered energy for customers.

"Our investors will receive an attractive premium for their investment and will also benefit from the opportunity to participate in any potential upside of the combination, including future value creation and a growing dividend program," added Mr. Welch.

"Today is another important milestone for Fortis and ITC. The strong results of the ITC and Fortis shareholder votes, as well as the agreement with minority investor GIC Private Ltd., demonstrates confidence in this strategic acquisition," said Barry Perry, president and chief executive officer of Fortis. "We remain focused on closing the transaction by the end of this year."

Under the terms of the transaction, ITC shareholders will receive $22.57 (U.S.) in cash and 0.7520 of a Fortis common share for each ITC common share. Based on the Feb. 8, 2016, closing price for Fortis common shares and the U.S.-dollar/Canadian-dollar exchange rate on that date, the per-share consideration offered by Fortis represents a premium of 33 per cent over ITC's unaffected closing share price on Nov. 27, 2015, and a 37-per-cent premium to ITC's unaffected average closing price over the 30-day period prior to Nov. 27, 2015. The Fortis-ITC transaction was valued at approximately $11.3-billion (U.S.) as of the close of markets on Feb. 8, 2016.

The closing of the acquisition of ITC is expected to occur in late 2016 and is subject to receipt of certain regulatory approvals, including the approval of the Federal Energy Regulatory Commission, the Committee on Foreign Investment in the United States, and the United States Federal Trade Commission/Department of Justice under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as well as various state approvals, among others.

About ITC

ITC is the largest independent electric transmission company in the United States. Based in Novi, Mich., ITC invests in the electric transmission grid to improve reliability, expand access to markets, allow new generating resources to interconnect to its transmission systems and lower the overall cost of delivered energy. Through its regulated operating subsidiaries, ITCTransmission, Michigan Electric Transmission Company, ITC Midwest and ITC Great Plains, ITC owns and operates high-voltage transmission facilities in Michigan, Iowa, Minnesota, Illinois, Missouri, Kansas and Oklahoma, serving a combined peak load exceeding 26,000 megawatts along approximately 15,700 circuit miles of transmission line. ITC's grid development focus includes growth through regulated infrastructure investment, as well as domestic and international expansion, through merchant and other commercial development opportunities.

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