CenterPoint Energy to acquire Vectren in $6bn deal

By Pouyan Broukhim

Fortune 500-listed energy utility company CenterPoint Energy has announced that it has agreed to acquire Indiana-based rival Vectren in a deal valued at $6bn.

The merger will see Vectren shareholders receiving $72 per share in an all cash deal, representing a 10% premium compared to the company’s unaffected share price.

See also:

“This merger represents a significant step toward our vision to lead the nation in delivering energy, service and value,” said Scott Prochazka, President and Chief Executive Officer of CenterPoint Energy. 

“By combining our two highly complementary companies, we are creating an energy delivery, infrastructure and services leader that will drive value for our shareholders and customers, while enhancing growth opportunities for our businesses.”

Once complete, Vectren’s operations will add 1mn utilities customers to CenterPoint’s existing 6mn-customer portfolio, resulting in the creation of a combined company taking ownership of $29bn worth of assets across eight US states, valuing the firm at $27bn.

“Together, we will be a stronger, more competitive company that will be well-positioned to continue to provide value for our stakeholders in the years to come,” said Vectren’s Chairman, President and Chief Executive Officer, Carl Chapman.

Houston, Texas-based CenterPoint Energy will acquire all of Vectren’s outstanding debt upon closing of the acquisition, expected to close in Q1 2019.

Share

Featured Articles

Rise of the Chief Information Security Officer (CISO)

HE Dr Mohamed Al-Kuwaiti, Head of Cyber Security, UAE Government and Dr Aloysius Cheang, Chief Security Officer Huawei UAE, on the new age of the CISO

UAE building cybersecurity fortress for a safer world

Exclusive: His Excellency Dr Mohamed Al-Kuwaiti, Head of Cyber Security, UAE Government, on bold plans to build the world’s most secure digital society

The future of cybersecurity must be built on the basics

HE Dr Mohamed Al-Kuwaiti, Head of Cyber Security, UAE Government and Dr Aloysius Cheang, Chief Security Officer Huawei UAE, on the future of cybersecurity

10 of the best speakers at Procurement & Supply Chain LIVE

Leadership & Strategy

10 apps to support staff on World Mental Health Day

Leadership & Strategy

DEI done right: Brook Sims, COO, MAC Diversity Recruiters

Leadership & Strategy