Entergy, based in New Orleans, said Monday that it will receive about $ 1.78 billion in cash, and shareholders will receive shares of the new company created by the combination of Novi, Mich.-based ITC and Entergy business. Entergy shareholders will be 50.1 percent share in the new company.
The combined company will have a presence in 12 States, including Michigan, Iowa, Louisiana, Mississippi, Alabama and Texas, and it will just focus on the power, produce no transmitting or delivery to your home or business. This will be one of the largest electricity transmission company in the United States, with more than 30,000 miles of transmission lines, according to a statement from the company.
Entergy’s electrical transmission business consists of approximately 15.700 km of transmission lines. Entergy will use most of the cash from the deal to retire debt tied to business.