KANSAS CITY, Mo. & TOPEKA, Kan.--(BUSINESS WIRE)--Nov. 21, 2017--
Westar Energy, Inc. (NYSE: WR) and Great Plains Energy Incorporated
(NYSE: GXP), the parent company of Kansas City Power & Light (“KCP&L”),
today announced at their respective shareholder meetings that
shareholders overwhelmingly approved the proposals necessary for the
merger between the two companies. More than 90 percent of the shares
voted at each company approved the transaction.
“We are excited about today’s approval from shareholders of both Great
Plains Energy and Westar Energy. This vote indicates that both
companies’ shareholders believe in our combined ability to create a
stronger regional energy provider, positioned to better serve all of our
customers,” said Terry Bassham, chairman, president and chief executive
officer of Great Plains Energy and KCP&L. “This new combined company
will ensure we keep ownership of our utility assets in our region to
grow local economies.”
“Customers and shareholders will benefit by combining Westar Energy and
Great Plains Energy into a strong Midwest utility,” said Mark Ruelle,
president and chief executive officer of Westar Energy. “Our geography
and history of partnership position us to bring efficiencies and savings
by joining our operations. We continue to make progress toward
completing the transaction in the first half of 2018.”
Westar Energy and Great Plains Energy announced a revised transaction in
July 2017 after the Kansas Corporation Commission denied the companies’
original request to combine in April. This revised agreement involves no
transaction debt, no exchange of cash, and is a stock-for-stock merger
of equals, creating a company with a combined equity value of
approximately $15 billion.
The merger is expected to help maintain reliable, low cost energy for
the company’s 1 million Kansas customers and nearly 600,000 customers in
Missouri. Additionally, with one of the largest renewable energy
portfolios in the nation, the new combined company will be a clean
energy leader, supplying nearly half of its retail sales from
emissions-free electricity.
For more information visit the “Westar Energy Merger” page at greatplainsenergy.com
or westarenergy.com/westar-at-a-glance.
About Great Plains Energy
Headquartered in Kansas City, Mo., Great Plains Energy Incorporated
(NYSE: GXP) is the holding company of Kansas City Power & Light Company
and KCP&L Greater Missouri Operations Company, two of the leading
regulated providers of electricity in the Midwest. Kansas City Power &
Light Company and KCP&L Greater Missouri Operations Company use KCP&L as
a brand name. More information about the companies is available on the
Internet at: www.greatplainsenergy.com
or www.kcpl.com.
About Westar Energy
As Kansas’ largest electric utility, Westar Energy, Inc. (NYSE:WR)
provides customers the safe, reliable electricity needed to power their
businesses and homes. Half the electricity supplied to the company’s
700,000 customers comes from emissions-free sources – nuclear, wind and
solar - with a third coming from renewables. Westar is a leader in
electric transmission in Kansas, coordinating a network of lines and
substations that support one of the largest consolidations of wind
energy in the nation. For more information about Westar Energy, visit www.WestarEnergy.com.
Forward-Looking Statements
Statements made in this communication that are not based on historical
facts are forward-looking, may involve risks and uncertainties, and are
intended to be as of the date when made. Forward-looking statements
include, but are not limited to, statements relating to the anticipated
merger transaction of Great Plains Energy Incorporated (Great Plains
Energy) and Westar Energy, Inc. (Westar Energy), including those that
relate to the expected financial and operational benefits of the merger
to the companies and their shareholders (including cost savings,
operational efficiencies and the impact of the anticipated merger on
earnings per share), the expected timing of closing, the outcome of
regulatory proceedings, cost estimates of capital projects, dividend
growth, share repurchases, balance sheet and credit ratings, rebates to
customers, employee issues and other matters affecting future
operations. In connection with the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995, Great Plains Energy and Westar
Energy are providing a number of important factors that could cause
actual results to differ materially from the provided forward-looking
information. These important factors include: future economic conditions
in regional, national and international markets and their effects on
sales, prices and costs; prices and availability of electricity in
regional and national wholesale markets; market perception of the energy
industry, Great Plains Energy and Westar Energy; changes in business
strategy, operations or development plans; the outcome of contract
negotiations for goods and services; effects of current or proposed
state and federal legislative and regulatory actions or developments,
including, but not limited to, deregulation, re-regulation and
restructuring of the electric utility industry; decisions of regulators
regarding rates that the companies can charge for electricity; adverse
changes in applicable laws, regulations, rules, principles or practices
governing tax, accounting and environmental matters including, but not
limited to, air and water quality; financial market conditions and
performance including, but not limited to, changes in interest rates and
credit spreads and in availability and cost of capital and the effects
on derivatives and hedges, nuclear decommissioning trust and pension
plan assets and costs; impairments of long-lived assets or goodwill;
credit ratings; inflation rates; effectiveness of risk management
policies and procedures and the ability of counterparties to satisfy
their contractual commitments; impact of terrorist acts, including, but
not limited to, cyber terrorism; ability to carry out marketing and
sales plans; weather conditions including, but not limited to,
weather-related damage and their effects on sales, prices and costs;
cost, availability, quality and deliverability of fuel; the inherent
uncertainties in estimating the effects of weather, economic conditions
and other factors on customer consumption and financial results; ability
to achieve generation goals and the occurrence and duration of planned
and unplanned generation outages; delays in the anticipated in-service
dates and cost increases of generation, transmission, distribution or
other projects; Great Plains Energy’s and Westar Energy’s ability to
successfully manage and integrate their respective transmission joint
ventures; the inherent risks associated with the ownership and operation
of a nuclear facility including, but not limited to, environmental,
health, safety, regulatory and financial risks; workforce risks,
including, but not limited to, increased costs of retirement, health
care and other benefits; the ability of Great Plains Energy and Westar
Energy to obtain the regulatory and shareholder approvals necessary to
complete the anticipated merger or the imposition of adverse conditions
or costs in connection with obtaining regulatory approvals; the risk
that a condition to the closing of the anticipated merger may not be
satisfied or that the anticipated merger may fail to close; the outcome
of any legal proceedings, regulatory proceedings or enforcement matters
that may be instituted relating to the anticipated merger; the costs
incurred to consummate the anticipated merger; the possibility that the
expected value creation from the anticipated merger will not be
realized, or will not be realized within the expected time period;
difficulties related to the integration of the two companies; the credit
ratings of the combined company following the anticipated merger;
disruption from the anticipated merger making it more difficult to
maintain relationships with customers, employees, regulators or
suppliers; the diversion of management time and attention on the
anticipated merger; and other risks and uncertainties.
This list of factors is not all-inclusive because it is not possible to
predict all factors. Additional risks and uncertainties are discussed in
the joint proxy statement/prospectus and other materials that Great
Plains Energy, Westar Energy and Monarch Energy Holding, Inc. (Monarch
Energy) filed with the Securities and Exchange Commission (SEC) in
connection with the anticipated merger. Other risk factors are detailed
from time to time in quarterly reports on Form 10-Q and annual reports
on Form 10-K filed by Great Plains Energy and Westar Energy with the
SEC. Each forward-looking statement speaks only as of the date of the
particular statement. Monarch Energy, Great Plains Energy, and Westar
Energy undertake no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information,
future events or otherwise.
View source version on businesswire.com: http://www.businesswire.com/news/home/20171121005827/en/
Source: Great Plains Energy
Great Plains Energy Incorporated
Investors:
Calvin
Girard, 816-654-1777
Senior Manager, Investor Relations
calvin.girard@kcpl.com
or
Media:
Courtney
Hughley, 816-556-2414
Senior Manager, Corporate Communications
Courtney.Hughley@kcpl.com
Media
line: (816) 392-9455
or
Westar Energy, Inc.
Investors:
Cody
VandeVelde, 785-575-8227
Director, Investor Relations
Cody.VandeVelde@westarenergy.com
or
Media:
Gina
Penzig, 785-575-8089
Media Relations Manager
Gina.Penzig@westarenergy.com
Media
line: 888-613-0003
