Wisconsin Energy WEC on Monday morning announced the acquisition of Integrys Energy Group TEG.
Under the deal approved by both boards, Wisconsin will be spending $5.7 billion of cash and stock. Including debt, the companies said the total value of the deal is $9.1 billion.
Integrys shareholders will receive $18.58 in cash and 1.128 Wisconsin Energy shares per share of Integrys, totaling $71.47. This is 17.3 percent over Integrys’ Friday closing price.
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Regarding an expanded dividend policy, Wisconsin Energy CEO Gale Klappa commented, "At closing, we would expect a further dividend increase for the Wisconsin Energy shareholders to reflect the dividend policy of the combined company. In future years, the projected payout target for the combined company will be 65-70 percent of earnings,"
At last check, shares of Integrys were up more than 16 percent in Monday's pre-market.
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