Wisconsin Energy To Acquire Integrys - Quick Facts

(RTTNews) - Wisconsin Energy Corp. (WEC) and Integrys Energy Group Inc. (TEG) announced that they have entered into a definitive agreement under which Wisconsin Energy will acquire Integrys in a transaction valued at $9.1 billion. The combined company will be named WEC Energy Group, Inc., and will hold a 60 percent stake in American Transmission Co.

Integrys shareholders will receive common stock at a fixed exchange ratio of 1.128 Wisconsin Energy shares plus $18.58 in cash per Integrys share. Total consideration is valued at $71.47 per Integrys share, with a consideration mix of 74 percent stock and 26 percent cash.

Klappa will become chairman and CEO of the combined company. Schrock will remain in his current roles with Integrys until the closing of the transaction, when he will retire. The other senior leadership roles in the combined company will be filled by current senior officers of Wisconsin Energy.

The proposed dividend policy of the combined company will be designed to initially keep Integrys' shareholders neutral after taking into consideration both the stock and cash they received. In the period before closing, Wisconsin Energy plans to continue its current dividend policy, which calls for a 7-8 percent annual increase in the dividend.

Integrys also announced that it is in the late stages of a competitive process to divest Integrys Energy Services, its non-regulated marketing subsidiary.