KANSAS CITY, Mo., Oct. 9, 2007 (PRIME NEWSWIRE) -- Aquila Inc. (NYSE:ILA) today announced that its shareholders voted to adopt a merger agreement providing for the acquisition of Aquila by Great Plains Energy Incorporated (NYSE:GXP). Aquila Chairman and Chief Executive Officer Richard C. Green announced the voting totals today at a special shareholder meeting held in the Kansas City area.
For the proposed merger to proceed, more than 50 percent of Aquila's outstanding shares had to be voted "FOR" the merger. A total of approximately 255 million Aquila shares were voted at the special meeting, with 88 percent of the votes cast being voted "FOR" the proposed merger. As of the record date, August 27, 2007, approximately 375 million shares of Aquila common stock were outstanding.
"We are pleased Aquila shareholders voted in support of this merger," said Green. "This is not only a positive vote for the future of the company, but when the transaction is complete our shareholders will hold stock in a dividend paying, investment-grade company."
Under the merger agreement, Aquila shareholders will receive cash and stock consideration of $1.80 and 0.0856 of a share of Great Plains Energy common stock in exchange for each share of Aquila common stock they hold. Upon completion of the transaction, Aquila will become a wholly-owned subsidiary of Great Plains Energy.
Great Plains Energy will hold a special shareholder meeting tomorrow (Oct. 10) to vote on the proposed transaction. To obtain shareholder approval, a majority of Great Plains Energy shareholders must vote on the proposed transaction, and a majority of the votes cast must vote "FOR" the transaction.
In Feb. 2007, the company announced the merger of its Missouri electric operations with Great Plains Energy, and the sale of its Colorado electric operation and its natural gas operations in Colorado, Iowa, Kansas and Nebraska to Black Hills Corp. At the beginning of 2007, Aquila's assets totaled $3.5 billion. Sales for 2006 were $1.4 billion and net income was $23.9 million.
Subject to the satisfaction of certain conditions, including receipt of regulatory approvals and approval of Great Plains Energy's shareholders, Aquila expects the merger to close in the first quarter of 2008. Aquila customers will continue to be served by the company until the transaction is completed. More detailed communications on this transition will be sent to customers early next year.
Aquila is an electric and natural gas distribution utility company based in Kansas City, Mo., that serves more than 900,000 customers in five Midwestern states (Colorado, Iowa, Kansas, Missouri and Nebraska). The company also owns and operates generation assets. More information is available at Aquila.com.
Forward-Looking Statements
This press release contains a forward-looking statement within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give Aquila's current expectations or forecasts of future event. Forward-looking statements involve risks and uncertainties, and certain important factors can cause actual results to differ materially from those anticipated. The forward-looking statement contained in this press release includes that Aquila expects to close the merger in the first quarter of 2008. Some important factors that could cause actual results to differ materially from those anticipated include: the occurrence of any event, change or circumstance that could give rise to the termination of the merger agreement; the inability of Great Plains Energy to obtain stockholder approval; the inability of the parties to obtain any regulatory approvals required to complete the merger; the inability of Black Hills Corporation to complete the acquisition of certain Aquila assets prior to completion of the merger; and, the failure of the parties to satisfy the other conditions to closing.