RENO, Nev., July 28 /PRNewswire/ -- Sierra Pacific Resources and Nevada
Power Company (NYSE: NVP) have completed their merger. Today's close of the
merger transaction was the last step in a 15-month process to merge the two
Nevada utilities that included approvals from both companies' shareholders,
state and federal regulators.
"We're done," exclaimed the new Sierra Pacific Resources Chairman and CEO,
Michael R. Niggli. "It's been a long road to complete the merger, yet ours
has been one of the fastest mergers among electric utilities in the nation."
He credited the success to a good working relationship between the merged
companies and praised state and federal regulators for recognizing the value
of the merger for customers, shareholders and the state of Nevada.
Sierra Pacific Resources is now the holding company for Nevada Power
Company and Sierra Pacific Power Company and subsidiaries operated by both
companies. The merged company is headquartered in Reno, with utility
operations based in Las Vegas. Beginning tomorrow, the stock for the new
company will be traded on the New York Stock Exchange as Sierra Pacific
Resources (NYSE: SRP).
Earlier the company estimated net merger savings of approximately
$323 million over 10 years expected from the elimination of duplicate
corporate and administrative programs and greater efficiencies in operations,
business processes and purchasing.
"We are happy to report that we are on track to receive at least the
estimated merger savings and our integration plans are well underway," said
Malyn K. Malquist, president and COO of Sierra Pacific Resources.
"The long-term strategic vision for the new company is to become a premier
transmission, distribution and energy services company in the West," Niggli
said. The combined company will serve 843,000 electric customers in southern
and northern Nevada and the Lake Tahoe area of California, along with 105,000
natural gas and 67,000 water customers in the Reno, Nevada metropolitan area.
It ranks second in the West and 15th in the nation among transmission
companies.
Under terms of the merger agreement, shareholders elected whether to
receive cash, shares of the new company, or a combination of both, in exchange
for their old stock. Sierra Pacific stockholders could elect to receive
1.44 shares of the combined company's common stock per share or $37.55 per
share. Each stockholder of Nevada Power could elect to receive 1.00 share of
the combined company's common stock per share or $26 per share.
Shareholders who elected to receive stock will receive stock.
Shareholders who did not make an election, or chose "no preference," will also
receive stock. Because the shareholders of both companies did not elect to
receive all of the shares allocated to them, the remaining shares will be
proportionately allocated among those shareholders who elected to receive
cash.
Sierra Pacific Resources shareholders who elected to receive cash will
receive cash for a maximum of 87 percent of their total shares and common
stock in the new company for a minimum of 13 percent of their total shares.
The percentages are subject to further adjustment for shareholders with fewer
than 100 shares.
Nevada Power Company shareholders who elected to receive cash will receive
cash for a maximum of 94.5 percent of their total shares and common stock in
the new company for a minimum of 5.5 percent of their total shares. The
percentages are subject to further adjustment for shareholders with fewer than
100 shares.
Shareholders with fewer than 100 shares of stock in Sierra Pacific or
Nevada Power will receive cash for all their shares of stock. A final
allocation of cash and stock of both companies' shares will be available at a
later date.
Sierra Pacific Resources stock will retain its existing New York stock
exchange symbol (SRP) and, will have a new CUSIP number (826428 10 4). The
common stock of Nevada Power will cease trading on the New York Stock Exchange
and Pacific Exchange at the close of business today.
SOURCE Nevada Power Company
 back to top
Related links:
http://www.nevadapower.com
Company News On-Call:
http://www.prnewswire.com/comp/604296.html or fax,
800-758-5804, ext. 604296
CONTACT:
Media: Faye I. Andersen, 775-834-4822, or
Investors: Richard Atkinson, 775-834-4358, both for Sierra
Pacific; or Media: Sonya Headen, 702-367-5680, or Investors:
Lauran M. Watson, 702-367-5610, both for Nevada Power
NOTE TO EDITORS: Today's news release is available on the
Internet at: http://www.sierrapacific.com/whatsnew/releases
http://www.nevadapower.com/investors/npcnewsframe.html
|
