The successful stock-for-stock merger between Westar Energy Inc and Great Plains Energy Incorporated has formed Evergy Inc. (EVRG - Free Report) , with equity value of $15 billion. The new entity commenced trade in the exchange from Jun 5, 2018, and became a member of the elite S&P 500 group on the same day by replacing Navient Corporation (NAVI - Free Report) .
Evergy will serve more than 1.6 million utility customers in Kansas and Missouri. Nearly 50% of the electricity supplied to its customers will come from clean sources. The company will operate through its subsidiaries — Westar Energy and Kansas City Power and Light Company.
Benefits of Merger to Customers
Customers of Westar Energy and Great Plains Energy will enjoy the benefits of customer bill credits over the first five years, post the closure of the merger. Customers in Missouri will receive $29-million bill credit and in Kansas, they will get bill credit worth $75 million.
Benefits for Shareholders
Evergy is planning a 60-million share repurchase of its common stock for the next two years, which is likely to stabilize the capital structure. Shareholders will benefit from solid returns and attractive dividend growth.
Focus on Renewables
The new utility will focus on renewable energy sources to meet household and businesses requirements. The company, which will be among the largest wind power operators in the United States, plans to add more renewable sources in its generation fleet in the long run.
Zacks Rank
Evergy carries a Zacks Rank #3(Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Acquisition & Merger in Utility Space
In a bid to increase scope of operation and utilize resources, Utility players are resorting to mergers and acquisitions. Larger companies are frequently resorting to this trend, courtesy of funds that are essential for vital infrastructure upgrades.
In early 2018, SCANA Corporation entered into a merger agreement with Dominion Energy (D - Free Report) . Per the deal, stockholders of SCANA will get 0.669 shares of Dominion. Considering the assumption of $6.7-billion debt of SCANA by Dominion, the transaction is worth about $14.6 billion.
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
The successful stock-for-stock merger between Westar Energy Inc and Great Plains Energy Incorporated has formed Evergy Inc. (EVRG - Free Report) , with equity value of $15 billion. The new entity commenced trade in the exchange from Jun 5, 2018, and became a member of the elite S&P 500 group on the same day by replacing Navient Corporation (NAVI - Free Report) .
Evergy will serve more than 1.6 million utility customers in Kansas and Missouri. Nearly 50% of the electricity supplied to its customers will come from clean sources. The company will operate through its subsidiaries — Westar Energy and Kansas City Power and Light Company.
Benefits of Merger to Customers
Customers of Westar Energy and Great Plains Energy will enjoy the benefits of customer bill credits over the first five years, post the closure of the merger. Customers in Missouri will receive $29-million bill credit and in Kansas, they will get bill credit worth $75 million.
Benefits for Shareholders
Evergy is planning a 60-million share repurchase of its common stock for the next two years, which is likely to stabilize the capital structure. Shareholders will benefit from solid returns and attractive dividend growth.
Focus on Renewables
The new utility will focus on renewable energy sources to meet household and businesses requirements. The company, which will be among the largest wind power operators in the United States, plans to add more renewable sources in its generation fleet in the long run.
Zacks Rank
Evergy carries a Zacks Rank #3(Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Acquisition & Merger in Utility Space
In a bid to increase scope of operation and utilize resources, Utility players are resorting to mergers and acquisitions. Larger companies are frequently resorting to this trend, courtesy of funds that are essential for vital infrastructure upgrades.
In early 2018, SCANA Corporation entered into a merger agreement with Dominion Energy (D - Free Report) . Per the deal, stockholders of SCANA will get 0.669 shares of Dominion. Considering the assumption of $6.7-billion debt of SCANA by Dominion, the transaction is worth about $14.6 billion.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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