Westar Energy: A Solid Company With A Generous Dividend - Selling At A Discount
Andrew Heyl • 12 Comments
Andrew Heyl • 12 Comments
Thu, Jun. 2, 3:34 PM
- Great Plains Energy (GXP -1.9%) is downgraded to Underweight from Equal Weight with a $28 price target at Barclays, which foresees regulatory and financing hurdles associated with closing its proposed $8.6B acquisition of Westar Energy (WR +0.2%).
- While GXP’s guidance is “defensible,” the regulatory calendar is very crowded and “the high sensitivity to financing costs the transaction employs through a great deal of leverage will cause the stock to underperform the utility group into the close of the transaction," Barclays analyst Daniel Ford writes.
- The firm has an Equal Weight rating on WR and a $60 price target, assuming the merger closes within 12 months.
Tue, May 31, 7:14 AM
- Great Plains Energy (NYSE:GXP) agrees to acquire Westar Energy (NYSE:WR) for $8.6B in cash and stock, in a major consolidation in the utilities sector.
- WR shareholders will receive $60/share - $51 in cash and $9 in GXP stock - a 13% premium to WR's closing price on Friday.
- The companies say the enterprise value of the deal is ~$12.2B, including WR's ~$3.6B of debt.
- GXP CEO Terry Bassham will be chairman and CEO of the combined company.
- Upon completion of the deal, GXP, the parent of Kansas City Power & Light, will have more than 1.5M customers in Kansas and Missouri.
- WR +8.9% premarket.
Thu, May 12, 3:56 PM
- Ameren (AEE -0.2%) is preparing to make a final takeover offer for Westar Energy (WR +0.5%), which has asked interested suitors to submit binding offers by May 23, Bloomberg reports.
- Great Plains Energy (GXP +0.2%) also may be interested in WR and has been seeking to partner with a financial investor such as a pension fund or infrastructure fund to help raise the cash necessary to buy its larger rival, according to the report.
- WR, the largest utility in Kansas, reportedly has been considering a sale amid a flurry of U.S. utilities mergers prompted by tepid power demand and mounting costs.
Fri, Apr. 8, 2:09 PM
- Westar Energy (WR +2.3%) moves higher after a brief trading halt, following a Bloomberg report that the Kansas electric utility is getting interest from buyers.
- Ameren (AEE -0.1%), which provides electrical transmission and natural gas delivery to 3M-plus customers in Missouri and Illinois, reportedly is interested, as well as an investor consortium that includes Borealis Infrastructure Management and the Canada Pension Plan Investment Board.
- Initial bids for WR, which has a ~$7B market cap, are due next week, according to the report.
- Now read Westar Energy +7% as it reportedly talks to potential buyers
Westar Energy, Inc. engages in the generation, transmission and distribution of electricity in Kansas. It provides electricity to residential, commercial and industrial customers in the cities of Topeka, Lawrence, Manhattan, Salina, Hutchinson, and Wichita. The company supplies electric energy... More
Industry: Diversified Utilities
Country: United States
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