April 20, 2016
FORTIS TO PARTNER WITH GIC
Fortis Inc. (“Fortis”) (TSX:FTS) announced today that it has reached a definitive agreement with GIC Private Limited (“GIC”), Singapore’s sovereign wealth fund, to acquire a 19.9% equity interest in ITC Holdings Corp. (“ITC”) (NYSE:ITC) for aggregate consideration of US$1.228 billion in cash upon the closing of the acquisition.
This definitive agreement follows the announcement on February 9, 2016 that Fortis will acquire ITC in a transaction valued on announcement at approximately US$11.3 billion. With the definitive agreement for the sale of 19.9% of ITC to GIC, Fortis has completed a significant component of the ITC acquisition financing.
The financing of the ITC acquisition has been structured to allow Fortis to maintain an investment grade credit rating and is consistent with maintaining Fortis’ existing capital structure. Financing for the cash portion of the acquisition purchase price will be achieved primarily through this minority investment sale, as well as through the issuance of approximately US$2 billion of Fortis debt.
“An important milestone in the acquisition of ITC has been accomplished,” said Barry Perry, President and Chief Executive Officer of Fortis. “We are very pleased to be partnering with GIC in the future growth and development of ITC. GIC is astute and thoughtful, with a proven track record in North American infrastructure investing. They share our vision for ITC and we look forward to working together in this partnership.”