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Energy East buys CMP
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June 15, 1999: 7:49 a.m. ET
In deal worth nearly $1B, Northeast utility to expand reach into Maine
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NEW YORK (CNNfn) - Energy East Corp., a natural gas and electric utility company, said Tuesday that it plans to buy CMP Group for about $957 million in cash, further expanding its customer base in the Northeast.
Under the deal, Albany, N.Y.-based Energy East (NEG) will buy all of the common stock of CMP Group (CTP) for $29.50 per share in cash, a 47 premium over CMP's closing price of $20.0625 on the New York Stock Exchange on Monday. There are about 32.4 million CMP Group common shares currently outstanding.
Energy East will also assume about $271 million in debt.
Augusta, Maine-based CMP's principal subsidiary is Central Maine Power Co. (CMP-), which serves more than 530,000 customers.
The acquisition must be approved by CMP shareholders and state and federal regulators. The deal is expected to close within a year, the companies said.
Energy East operates in New York, Massachusetts, Maine and New Hampshire. Its New York State Electric & Gas Corp. (NYSEG) subsidiary provides electric power and natural gas to more than 1 million customers in upstate New York.
In April, Energy East announced a merger with the Connecticut Energy Corp., adding 160,000 natural gas customers.
Energy East stock closed up 1/16 at 26-1/4 on Monday.
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Energy East
CMP Group
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