Sharses of Connecticut Water Service Inc.
shot up 9.9% in premarket trade Monday, after the water supply management company and SJW Group
announced an amendment to their merger agreement to an all-cash deal from all stock, and the in which the buyout bid increased to $70 a share. The amended agreement has a value of $1.1 billion, compared with the value of the equity purchase deal of $843 million. The per-share bid is 11% above Monday’s closing price for Connecticut Water’s stock of $62.85, is 10% above Eversource Energy’s
per-share bid of $63.50 and 13% above the per-share value of the original Connecticut-SJW merger agreement in March. SJW said the deal is expected to immediately add to earnings after the close. SJW’s stock was still inactive ahead of the open. Over the past 12 months, Connecticut Water’s stock has rallied 10.2%, SJW shares have run up 13.9% and the S&P 500
has gained 14.7%.
View more information: https://www.marketwatch.com/story/sjw-amends-buyout-deal-for-connecticut-water-to-cash-from-stock-raises-per-share-bid-2018-08-06