Published by Bloomberg News ; August 22,2017
Vectren Corp., a Midwestern gas and electric utility with a market value of almost $5.1 billion, is considering options including a potential sale after receiving takeover interest, people familiar with the matter said.
The Evansville, Indiana-based company has been working with a financial adviser after being approached by at least one potential buyer, said the people, who asked not to be identified because the matter wasn’t public. Vectren hasn’t formally put itself up for sale and could decide to remain independent, the people said. The identity of the potential suitor couldn’t immediately be learned.
A representative for Vectren declined to comment.
The U.S. power sector is experiencing a takeover boom as utilities strike deals to counter weak electricity demand and rising costs. High stock prices and access to relatively cheap debt are also driving the trend.
Sempra Energy agreed this month to pay $9.45 billion for Texas power distributor Oncor Electric Delivery Co., topping a bid by Berkshire Hathaway Inc. Two other utilities, AltaGas Ltd. and Hydro One Ltd., have announced acquisitions of more than $5 billion this year.
Vectren owns three utilities that provide electricity and natural gas to 1.2 million customers in Indiana and Ohio, according to an investor presentation in May. It has a non-utility division that offers underground pipeline construction and repair services. That unit also helps municipalities and businesses lower their power costs by outfitting facilities with energy-efficient equipment.
This is a developing Story
So, It has a non-utility division that offers underground pipeline construction and repair services. Guess that explains why we had to have all of the natural gas pipes in Evansville replaced.
Also owns Energy Systems Group.
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