Eversource Reiterates Proposal To Buy Connecticut Water Service For $63.50/shr


(RTTNews.com) - Eversource Energy ( ES ) said it reiterated its offer to acquire Connecticut Water Service Inc. ( CTWS ) at $63.50 per share in cash and/or Eversource shares.

Eversource said that it is not increasing its standing proposal, but is providing a clear path for Connecticut Water shareholders to receive incremental value above $63.50 per share. Eversource's superior proposal continues to be a highly attractive option for Connecticut Water, with no financing contingency and no Eversource shareholder vote required for approval.

Additional value would be available for Connecticut Water shareholders if SJW Group ( SJW ) terminates the pending merger agreement and pays the San Jose Water termination fee of $42.5 million to Connecticut Water. This equates up to approximately $3.41 per share of CTWS.

Additionally, if the pending merger agreement between Connecticut Water and San Jose Water is terminated such that Connecticut Water does not have to pay the $28.1 million termination fee to San Jose Water, that equates upto approximately $2.25 per share of CTWS.

Connecticut Water shareholders should note that San Jose Water and Connecticut Water can mutually agree to terminate their merger agreement at any time with no termination fees being owed by either party.

Both Connecticut Water and San Jose Water, as part of the preclusive Connecticut Water "go-shop" process, refused to eliminate or reduce the termination fees while simultaneously extending the tail period applicable to the termination fee payable by Connecticut Water from 12 to 15 months and providing San Jose Water with additional rights to match competing proposals. These are highly preclusive actions that are not in the best interest of Connecticut Water's shareholders.


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