- Fortis (FTS) is set to acquire an additional 10 per cent interest in Caribbean Utilities Company as part of a standby commitment
- Under the terms of a rights offering, Fortis’ subsidiary, Fortis Energy Bermuda, will acquire just under two million shares in Caribbean Utilities Company at a price of C$18.78 (or US$14.24) each
- Fortis Energy Bermuda may acquire an additional 1.4 million shares if there are no other subscribers in the rights offering for a total of $63 million
- Prior to the offering, Fortis held 19.4 million shares in Caribbean Utilities Company, representing approximately 58 per cent of its outstanding securities
- Fortis (FTS) is currently down 0.64 per cent and is trading at $52.85 per share
Fortis (FTS) is set to acquire an additional 10 per cent interest in Caribbean Utilities Company as part of a standby commitment.
The acquisitions comes as part of a rights offering, in which TSX-listed Caribbean Utilities Company will issue up to 3,359,362 Class A ordinary shares to Fortis’ subsidiary, Fortis Energy Bermuda.
Fortis intends to exercise its right to purchase an initial package of at least 1,946,032 of these shares at a price of C$18.78 (or US$14.24) each for a total of $36.54 million (US$27.71 million).
The company may then acquire an additional 1,413,330 shares at the same price, should there be no other participants in the offering. This will results in Fortis acquiring 3,359,362 in Caribbean Utilities Company for a total of $63 million (US$47.8 million).
Prior to the offering, Fortis indirectly held 19,460,326 shares in Caribbean Utilities Company, representing approximately 58 per cent of the company’s issued and outstanding capital. This will be bumped to a total of roughly 62 per cent should Fortis acquire all of the shares under the rights offering.
Today’s release noted that the purpose of the offering is to provide Caribbean Utilities Company with capital to be used to refinance its existing debt and for general corporate purposes.
Fortis made its first investment in Caribbean Utilities Company in 2000 with the acquisition of a 20 per cent interest. The company said it may review its holding where appropriate, acquiring or disposing of securities as necessary.
Fortis (FTS) is down 0.64 per cent and is trading at $52.85 per share at 10:36am EDT.