Water Co. That Serves Old Lyme Rejects Eversource Offer: Report

OLD LYME, CT — Connecticut Water Service, Inc. has rejected the $63.50 per share offer by Eversource Energy to buy the water company which serves Old Lyme and more than 50 other Connecticut communities, Reuters reports.

Eversource made its proposal on April 5, which called for $63.50 per share in cash and/or in Eversource common shares to be decided by Connecticut Water shareholders. That offer, which is worth close to $750 million, was not announced publicly until yesterday, April 19.

Connecticut Water, however, announced later on Thursday that it had rejected the offer because it had previously accepted an offer by SJW Group that amounts to $63.70 per share after a rise in SJW shares, according to Reuters.

"Eversource believes its proposal is a superior alternative to the all-stock transaction proposed in SJW Group’s (NYSE: SJW) agreement announced March 15, 2018 to acquire Connecticut Water," wrote Eversource officials in a statement. "Eversource’s proposal represents a 21 percent premium to Connecticut Water’s closing share price on March 14, 2018, the day prior to the SJW announcement. Eversource’s proposal also represents a premium of 22 percent to Connecticut Water’s 20-day volume-weighted average price as of March 14, 2018. In addition, those Connecticut Water shareholders who elect to receive Eversource shares would realize the equivalent of an 81 percent dividend uplift based on the closing price of Eversource’s shares on April 4, 2018 and the annualized quarterly dividend of $0.2975 per share declared by Connecticut Water on January 18, 2018."

SJW says it remains committed to the deal with Connecticut Water, which is expected to close by the end of the year.

"We believe that our proposal represents a unique opportunity to deliver significant and immediate value to Connecticut Water’s shareholders, customers, employees, and local communities," said Eversource Chairman, President and Chief Executive Officer Jim Judge in a statement. "As such, we were surprised and disappointed that Connecticut Water’s Board of Directors has been unwilling to engage in discussions with us. We urge the Board of Connecticut Water to act in the best interests of its shareholders by meeting with us to seriously discuss our compelling proposal."

Click here to read the full story on the Reuters website.

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