KANSAS CITY, Mo.—Shareholders of Great Plains Energy Inc. on Wednesday voted in favor of the company’s proposed acquisition of Aquila Inc.’s electric operations in Missouri.
Great Plains spokesman Matt Tidwell said 96 percent of shareholders who voted approved the Kansas City-based utility issuing common stock in connection with the purchase, valued at $1.6 billion.
Aquila shareholders approved the sale Tuesday. Shareholders will receive about $4.35 in cash and Great Plains stock for each share, based on Great Plains’ closing price Tuesday of $29.84 per share.
Great Plains shares fell 21 cents to close at $29.63 Wednesday, while Aquila shares rose 2 cents to close at $4.13.
The deal still requires approval from federal and state regulators and is scheduled to close in the first quarter of 2008.
Once the Great Plains sale closes, Aquila will sell its remaining natural gas operations in Colorado, Kansas, Nebraska and Iowa and its electric operations in Colorado to Black Hills Corp. of Rapid City, S.D., for about $940 million in cash.
When the acquisition was announced in February, Great Plains said the combined utility would have annual revenue of more than $3 billion and about 800,000 customers.
The company said it expected operational savings of about $320 million over five years, after accounting for about $180 million in expenses related to the deal.
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