CH Energy to be acquired by Fortis for $1.5B

CH Energy Group has entered into a definitive merger agreement with Fortis Inc., the largest investor-owned distribution utility in Canada, under which Fortis will acquire CH Energy Group for an aggregate purchase price of approximately $1.5B, including the assumption of approximately $500M of debt. The all-cash transaction will provide $65 per share to common shareholders of CH Energy Group, parent company of Central Hudson Gas & Electric Corporation, an approximate 10.5 percent premium above CH Energy Group’s closing stock price on February 17, 2012, the last trading day before the announcement; a premium of 13.1% above its most recent 20-day trading average of $57.49; and approximately 10.4 times its 2011 EBITDA. Subject to regulatory approvals and other customary closing conditions, the transaction is expected to close in the first quarter of 2013.