Fortis to sell minority stake in ITC to help finance US$11.3B acquisition
by The Canadian Press
Company says sale of 19.9 per cent stake in company will help finance deal
ST. JOHN’S, N.L.—Fortis Inc. has signed a deal to help finance its blockbuster US$11.3 billion acquisition of U.S. electric transmission company ITC.
The utility company announced April 20 it has an agreement that will see Singapore’s sovereign wealth fund take a minority stake in ITC Holdings Corp. for US$1.228 billion in cash.
Under the agreement, GIC Private Ltd. will acquire a 19.9 per cent equity interest in ITC Holdings Corp.
The ITC deal announced in February would expand Fortis’s holdings in the U.S. and give it access to more than 25,000 kilometres of transmission lines.
The agreement requires the blessing of ITC and Fortis shareholders as well as regulatory and federal approvals and other closing conditions.
It is expected to be completed later this year.
“An important milestone in the acquisition of ITC has been accomplished,” Fortis chief executive Barry Perry said in a statement.
“We are very pleased to be partnering with GIC in the future growth and development of ITC. GIC is astute and thoughtful, with a proven track record in North American infrastructure investing.”