Texas regulators hear oral arguments regarding $4.3B El Paso Electric deal

摘要

Texas regulators on Tuesday completed a hearing on Sun Jupiter Holdings’s proposal to acquire El Paso Electric for $4.3 billion including net debt, following a December 17 settlement among most of parties with a $21 million rate credit to be paid to customers over three years. With equity supplied by IIF US Holding 2, Sun Jupiter’s subsidiary, Sun Merger Sub, plans to merge into El Paso Electric with EPE as the surviving corporation, which will be a wholly owned direct private subsidiary of Sun Jupiter and a wholly owned indirect subsidiary of IIF US 2, according to the joint stipulation agreement (Docket No. 49849). El Paso Electric’s shareholders will receive $68.25/share, a 17% premium to EPE’s closing price on May 31, 2019, on the New York Stock Exchange, resulting in an enterprise value of about $4.3 billion, including EPE’s net debt. Ultimately, DeAnn Walker, who chairs the Public Utility Commission of Texas, said the commission would take some time to review documents before discussing the matter again at its January 16 meeting. She asked representatives of the applicants to have someone present to answer any questions that may arise during that time.