Whitby Hydro Energy Corporation has entered into a Memorandum of Understanding to explore the potential benefits of joining utilities with Veridian Corporation. Check this hub regularly for updates and to stay involved with the process.
The MOU was executed as of July 17th, 2017 between Veridian Corporation and Whitby Hydro. The MOU has already been publicly posted. Communications is central to this process and we want to be as open and transparent as we can be with our customers. A copy of the MOU can be found here.
Veridian and Whitby previously participated in a three-party merger review that included Oshawa PUC. Oshawa PUC amicably withdrew from those discussions earlier this year. The work that was done through the three-party review will be helpful to the current two-party merger review process. Accordingly, Veridian and Whitby anticipate a streamlined review process. If the merger review process confirms that a merger would provide benefits to customers and shareholder, subject to the required approval of the municipal councils following a public report, the parties will endeavour to enter into a merger agreement no later than December 31, 2017 and to complete the transaction by July 1, 2018.
Both Veridian and Whitby see significant merits in the proposed merger. Our focus is on our customers and ensuring we can deliver savings through greater efficiencies and innovation. We further have confidence in the competitive strength that could be found in the combined company, due to the larger scale.
Each entity has to review and evaluate on what is best for their respective customers, shareholders and overall businesses. The evaluation process was meant to review all these elements before any formal agreement to merge was made. The review process did exactly what it was intended to do, to ensure all parties could deliver synergies to customers. For Oshawa PUC, the benefits did not align with those objectives and they choose to amicably withdraw. This type of outcome is not uncommon in merger evaluations.
Business expenses incurred to evaluate the potential merger will be fairly shared between the two parties and paid from retained corporate earnings. These business expenses have no impact on customer rates or planned shareholder dividends.
Veridian Corporation and Whitby Hydro Energy Corporation Take Step Forward with Signing of Memorandum of Understanding
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