WASHINGTON (dpa-AFX) - Connecticut Water Service, Inc. (CTWS) said that it recently received a revised acquisition proposal from Eversource Energy (ES) to acquire all of the outstanding shares of Connecticut Water common stock for $64.00 per share in cash and/or in Eversource common stock at the election of Connecticut Water shareholders. Connecticut stated that Eversource's revised $64.00 per share proposal represents a less than 1% increase from previously rejected $63.50 per share proposal.
In accordance with the terms of the SJW Group amended merger agreement, the Connecticut Water Service Board of Directors carefully reviewed Eversource's revised acquisition proposal and unanimously concluded that it is not a superior proposal as compared to the terms, value and benefits of the SJW Group (SJW) merger of equals. Moreover, the Board unanimously determined that Eversource's revised proposal is inadequate and still undervalues Connecticut Water on a standalone basis.
In unanimously rejecting Eversource's revised proposal, the Connecticut Water Service Board reiterated its willingness to consider any proposal from Eversource or any other party that delivers shareholder value superior to that provided in the SJW Group merger.
Connecticut Water Service said that to date, no superior alternative proposal has been received, even with Connecticut Water undertaking a public go-shop process during which more than 50 potential bidders were actively solicited. The company noted that Eversource was among the parties invited to participate in this process, but it declined to do so and instead has pursued a public misinformation campaign.
On July 11, 2018, Connecticut Water received a letter from Eversource reiterating its inadequate $64.00 per share proposal. In its letter, Eversource provided no movement toward Connecticut Water's $69.50 per share counterproposal, but instead continued to assert numerous inaccuracies and mischaracterizations regarding the significant value and certain benefits created by the SJW Group merger. On July 12, 2018, Connecticut Water sent the following letter to Eversource to set the record straight and correct these inaccuracies and mischaracterizations.
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