Tags: Duke Progress Energy

Duke Energy to Buy Progress Energy for $13.7 Billion

Monday, 10 Jan 2011 07:27 AM

Duke Energy Corp. is buying Progress Energy Inc. for more than $13 billion in stock in a deal that would create one of the nation's largest utilities.

The transaction announced Monday by the two North Carolina companies would create a business with about 7.1 million electric customers in North Carolina, South Carolina, Florida, Indiana, Kentucky and Ohio.

It would also have a sizable nuclear energy business.

Under the agreement, Progress Energy's shareholders will receive 2.6125 shares of common stock of Duke Energy in exchange for each share of Progress Energy common stock.

Based on Duke Energy's closing share price on Friday, Duke said Progress Energy shareholders would get stock worth about $46.48 per share, or $13.7 billion.

That represents a 7.1 percent premium to the closing stock price of Progress Energy last Wednesday.

Duke Energy also will assume approximately $12.2 billion in Progress Energy net debt.

When the deal is completed, Jim Rogers, Duke Energy's chairman, president and CEO, will become an executive chairman of the new company. He will advise the company on strategic matters and serve as the company's lead spokesperson on energy policy.

Progress' top executive Bill Johnson will become president and chief executive officer of the new company.

The companies aim to close the deal by the end of the year. It's expected to boost Duke's adjusted earnings within a year after that.

Progress Energy shares rose 82 cents to $44.72 in premarket trading Monday, while Duke edged up 5 cents to $17.84.

© Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

1Like our page
2Share
Headline
Duke Energy Corp. is buying Progress Energy Inc. for more than $13 billion in stock in a deal that would create one of the nation's largest utilities. The transaction announced Monday by the two North Carolina companies would create a business with about 7.1 million...
Duke Progress Energy
247
2011-27-10
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved