Voters favor utility merger
By Kathy McCarty
PRESQUE ISLE — Maine & Maritimes Corporation shareholders recently voted in favor of a merger between MAM and BHE Holdings Inc. of Bangor.
MAM, parent company of Maine Public Service Company of Presque Isle, made the announcement July 22, indicating a vast majority of its shares were voted (by 99 percent of the votes cast) in favor of adopting the merger agreement with the Bangor subsidiary of Emera Inc., a Canadian-based energy company. The transaction remains subject to approval by the Maine Public Utilities Commission, the Federal Energy Regulatory Commission and the satisfaction or waiver of other customary closing conditions.
All outstanding share of MAM common stock will be purchased for U.S. $45 per share in cash, and the transaction is expected to close before the end of the year.
MAM officials were pleased shareholders chose to move forward with the merger.
“We are pleased that MAM shareholders have overwhelmingly supported this transaction,” said Chairperson of the Board Richard G. Daigle. “On behalf of the Board and management team, I want to thank our shareholders, customers and dedicated employees for their support throughout this process. We look forward to completing the merger with Emera and to creating a stronger company within the Emera family.”
All proxy cards and ballots submitted at the MAM shareholders’ annual meeting were processed by Computershare Trust Company, MAM’s transfer agent, for final tabulation and certification.
The proposed merger isn’t without controversy. Shortly after the announcement was made, a national law firm that specializes in shareholder rights — New York City-based Levi & Korsnisky, LLP — said it was launching an investigation into whether the MAM/BHE merger violates state law by breaching fiduciary duty to its stockholders. The firm questioned whether the MAM board of directors failed to adequately shop the company before entering into the transaction and if the $45-per-share price is an underpayment.
