Iberdrola USA and UIL have announced their plans to merge. The combined company will have a 2014 pro forma EBITDA of approximately US$ 2 billion, net income of US$ 570 million.
The new Company resulting from the combination will become one of the largest utilities in the USA and the 2nd largest wind operator company in the USA. The combined company will be listed on the NYSE. It will be 81.5% owned by Iberdrola SA and 18.5% by current UIL shareholders. The transaction, which has been approved and recommended to UIL shareholders by UIL’s board of directors, will be made through an exchange of Iberdrola USA shares for UIL stock and an additional cash payment to UIL shareholders of US$ 597 million. Three directors of UIL will be appointed after the merger to the board of directors of Iberdrola USA which will have a total of twelve members. The transaction, subject to the relevant regulatory and stock market authorizations and UIL shareholder approval, is expected to close in 2015.
