Avista Corp (NYSE: AVA) took off like a Saturn rocket on stock markets, after Ontario’s Hydro One (TSX: H) announced a deal to buy Avista at $53 per share in cash.
The deal, if put through, would establish one of North America's largest regulated utilities with over $25.4 billion U.S. ($32.2 billion Canadian) in assets and a leader in electricity transmission and distribution as well as natural gas local distribution businesses
The transaction, to quote a release issued Wednesday by the two companies, brings together two industry-leading regulated utilities with over 230 years of collective operational experience as well as shared corporate cultures and values. The combined entity will safely and reliably serve more than two million retail and industrial customers and hold assets throughout North America including Ontario, Washington, Oregon, Idaho, Montana and Alaska.
Said CEO Scott Morris, “"For Avista, the decision to team up with Hydro One at a time of strength and growth represents a win for our customers, employees, shareholders and the communities we serve.”
Following completion of the transaction, Avista will maintain its existing corporate headquarters in Spokane and will continue to operate as a standalone utility in Washington, Oregon, Idaho, Montana and Alaska.
Its management team and employees will remain in place and it will operate with its own Board of Directors representing the interests of the Pacific Northwest and the communities it serves. The combined company's headquarters will be based in Toronto.
Avista stock went skyward Thursday, gaining $8.50, or 19.6%, to $51.83.
