he parent company of Kansas City Power & Light (KCP&L) has struck a new merger deal with Kansas’s largest electric utility aimed at resolving objections that killed their previous deal.
Westar Energy, based in Topeka and serving 1 million customers in the Sunflower State, would merge with Great Plains Energy, the Kansas City-based parent of KCP&L.
“We are pleased to announce a revised agreement with Westar Energy that we believe directly addresses regulatory concerns with our originally proposed transaction, while increasing the long-term value and upside opportunity for our shareholders, customers, communities and employees,” said Terry Bassham, CEO of Great Plains who will be CEO of the combined businesses.
The deal, valued at US$14 billion, would involve forming a new company to hold all of the current pair’s operations. It would take on a new name, as yet undecided.
The new company also would be more than half owned by the current shareholders of Westar, according to an announcement Monday.
Full Content: Financial Times