Summary
Exelon Corporation (EXC) announced on March 24, 2016, the successful completion of its acquisition of Pepco Holdings, Inc. (PHI) on March 23, 2016. This significant transaction, effected through a merger, makes PHI an indirect, wholly-owned subsidiary of Exelon. The deal values each share of PHI common stock at $27.25 in cash, excluding certain excluded shares and shares with appraisal rights. This acquisition marks a major step for Exelon, expanding its regulated utility footprint. Investors will be focused on the integration of Pepco Holdings into Exelon's operations, potential synergies, and the impact on future earnings and growth strategies. The delisting of Pepco Holdings' common stock from the NYSE also signifies the full integration of the entities.
Key Highlights
- 1Exelon Corporation completed the acquisition of Pepco Holdings, Inc. (PHI) on March 23, 2016.
- 2The acquisition was structured as a merger where PHI became an indirect, wholly-owned subsidiary of Exelon.
- 3Each outstanding share of PHI common stock was acquired for $27.25 in cash.
- 4Shares held by Exelon or PHI subsidiaries, or those with perfected appraisal rights, were excluded from the cash payment.
- 5Pepco Holdings' common stock (NYSE: POM) has ceased trading and was delisted from the New York Stock Exchange.
- 6The transaction was completed based on the Amended and Restated Agreement and Plan of Merger dated July 18, 2014.
- 7A joint press release announcing the completion of the merger was issued on March 23, 2016.