Evergy has pushed back against a media report that it recently rebuffed a $15 billion acquisition offer from NextEra Energy, issuing a statement Tuesday that “there is currently no offer or bid from any third party for a potential transaction.”
Reuters on Monday quoted anonymous sources in saying that Evergy, which serves 1.6 million customers in Kansas and Missouri, turned down the offer. (See Report: Evergy Rebuffs NextEra Energy Bid.)
Evergy had explored potential purchases earlier this year but said this summer that it would remain independent. The utility said it will remain focused on a sustainable transformation plan (STP) that guided its decision. (See Evergy Releases Standalone Plan Details.)
“Since announcing the STP, there has been no change in circumstance that alters the basis for this decision,” Evergy said in its statement.
The plan follows a “comprehensive, independent review” that began earlier this year as part of an agreement with activist investor Elliott Management. The STP calls for $8.9 billion of capital investments in facility upgrades, grid modernization technologies and clean energy initiatives through 2024 in the company’s Kansas and Missouri service territory.
“We remain confident that the STP, which Elliott publicly endorsed when it was announced, is the best risk-adjusted path forward and that all appropriate steps are being and have been taken to maximize shareholder value. We will continue to act accordingly,” the company said.
Kansas and Missouri regulators have both opened dockets on the STP. Evergy said during its quarterly earnings call Nov. 5 that it expects to shortly file a jointly developed procedural schedule with the Kansas Corporation Commission that extends into 2021.
Missouri Public Service Commission staff face a Jan. 29 deadline to file a report on the STP.
“We don’t expect the commissions to take specific action regarding STP in either of those dockets,” Evergy CEO Terry Bassham said during the call. “The main purpose is to gather other information on and review our STP and ensure our continued resolve in meeting previous merger commitments while providing a forum and repository for stakeholder feedback.”
NextEra, armed with a three-figure stock price in recent years, has been on the hunt for regulated utilities. It has come up short in bids for Hawaiian Electric, Texas’ Oncor and national powerhouse Duke Energy. The company did pick up Gulf Power and Florida City Gas in a $6.4 billion deal in 2018 with Southern Co. and shelled out $660 million for independent transmission company GridLiance in September. (See NextEra Buying GridLiance for $660M.)
The company’s share price opened at $76.56 on Tuesday. NextEra’s common stock went through a four-to-one split in October to make its ownership “more accessible.”
