Southern buying AGL Resources for about $7.93 billion

FILE - In this April 28, 2010, file photo, steam rises from the cooling towers of nuclear reactors at Georgia Power's Plant Vogtle, in Waynesboro, Ga. Southern Co. is buying AGL Resources Inc. for approximately $7.93 billion, the company announced, Monday, Aug. 24, 2015, which would create the second-biggest utility company in the United States, by customer base. Mary Ann Chastain, File AP Photo

ATLANTA (AP) – Southern Co. is buying AGL Resources Inc. for approximately $7.93 billion, which will create the second-biggest utility company in the U.S. by customer base.

The combined business will include 11 regulated electric and natural gas distribution companies, serving approximately 9 million customers.

Southern will pay $66 in cash for each AGL share, a 38 percent premium to the company’s Friday closing price of $47.86.

Southern and AGL put the deal’s enterprise value at about $12 billion.

AGL, which will maintain its headquarters in Atlanta, will become a subsidiary of Southern.

Both companies’ boards have approved the transaction, which is targeted to close in the second half of 2016. It still needs approval from AGL shareholders and certain state utility and other regulatory commissions.

(Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s