UNS Energy is the Tucson, Arizona-based parent company of Tucson Electric Power (TEP) and UniSource Energy Services (UES). TEP serves more than 414,000 customers in and around Tucson, while UES provides natural gas and electric service to about 243,000 customers in northern and southern Arizona.
UNS Energy is a subsidiary of Fortis, the largest investor-owned electric and gas distribution utility in Canada. Fortis' regulated utility subsidiaries serve more than 3 million customers across Canada and in the United States and the Caribbean. Fortis also owns non-regulated hydroelectric generation assets in Canada, Belize and upstate New York.
The acquisition of UNS Energy Corporation by Fortis Inc., Canada's largest investor-owned gas and electric utility company, was finalized on August 15, 2014.
As members of the Fortis family of companies, UNS Energy subsidiaries Tucson Electric Power (TEP) and UniSource Energy Services (UES) have gained new financial strength while preserving local control over utility operations that will continue to provide customers with safe, reliable and affordable service.
Under terms of the companies' settlement agreement, bill credits totaling $30 million will be distributed over five years to TEP customers and to UES gas and electric customers. Both companies will remain headquartered in Tucson under local control with current management and staffing levels and no planned changes to existing operations.
The merger was approved by shareholders on March 26, 2014 during a special meeting and approved unanimously by the Arizona Corporation Commission during an Aug. 12, open meeting. More information for investors is available in the below.
Q: Now that the transaction is closed, what does this mean for UNS Energy shareholders?
A: Fortis will pay $60.25 per share for UNS Energy common stock. See below for answers on how to receive payment for your shares.
Q: Can I continue buying shares of UNS Energy?
A: No. Trading in UNS Energy shares has been suspended and UNS shares will soon be delisted from the New York Stock Exchange. UNS Energy is now a subsidiary of Fortis.
Q: Will UNS Energy continue paying dividends?
A: A final, "stub period" dividend was declared on August 7, 2014. This dividend is payable to shareholders of record as of the close of business on August 15, 2014.
Q: Do I have to sell my shares?
A: All shares have been cancelled and converted into the right to receive the purchase price.
Q: What do I need to do to receive payment for my shares?
A: If you are a registered shareholder with book entry shares (meaning you don't hold physical certificates of stock), or hold shares in a non-registered form (i.e., a bank, trust company, broker, nominee, etc.), then you don't need to do anything. You will receive a check in the mail or your account will receive the funds automatically through direct deposit.
If you hold physical certificates, you will receive a Letter of Transmittal and Letter of Instruction in the mail. Please follow the steps indicated on the forms.
Q: When will I receive payment for my shares?
A: If you are a registered shareholder with book entry or hold shares in a non-registered form, then checks will be mailed approximately five business days from the close of the transaction.If you hold physical certificates, payment will be made approximately five business days after Computershare receives a duly completed Letter of Transmittal and the certificates.
Q: What if I am a certificated shareholder and have not received any communication from Computershare?
A: The information about the transaction is scheduled to be mailed three business days after the close of the transaction. If a significant period of time has passed and you still have not received any information, it is likely that Computershare does not have your current personal information on file. Please contact them at 1-877-477-1579 to update your personal information.
Q: What are my tax implications because of this transaction?
A: Everyone's tax situation is unique. We recommend you speak with an accountant or financial advisor to understand how this transaction will affect you.
Q: Where can I find information about investing in Fortis?
A: Please visit https://www.fortisinc.com/Investor-Centre/Pages/Share-Plans.aspx for more information.
Q: What if I have additional questions about my UNS Energy shares?
A: If you hold your shares in a brokerage account, please contact your broker. If you are a registered shareholder, you may contact Computershare toll-free at 1-877-477-1579.
Like UNS Energy, Fortis was established as the publicly traded corporate parent of a local utility – Newfoundland Power – that has provided electric service since the late 1800s. As the company has expanded through a series of acquisitions, it has retained its commitment to disciplined, patient growth through continued focus on operational excellence.
Today, Fortis is the largest investor-owned gas and electric utility in Canada, providing gas and electric service to more than 3 million customers. Its regulated holdings include gas and electric utilities in five Canadian provinces, New York and two Caribbean countries.Visit the Fortis website