Fortis Completes Minority Investor Process On Pending ITC Holdings Acquisition

(RTTNews) - Fortis Inc. (FTS.TO) announced that it has reached a definitive agreement with GIC Private Limited, Singapore's sovereign wealth fund, to acquire a 19.9% equity interest in ITC Holdings Corp. (ITC) for aggregate consideration of US$1.228 billion in cash upon the closing of the acquisition.

The definitive agreement follows the announcement on February 9, 2016 that Fortis will acquire ITC in a transaction valued on announcement at approximately US$11.3 billion. With the definitive agreement for the sale of 19.9% of ITC to GIC, Fortis has completed a significant component of the ITC acquisition financing.

The financing of the ITC acquisition has been structured to allow Fortis to maintain an investment-grade credit rating and is consistent with maintaining Fortis' existing capital structure. Financing for the cash portion of the acquisition purchase price will be achieved primarily through this minority investment sale, as well as through the issuance of approximately US$2 billion of Fortis debt.

Upon closing of the acquisition, GIC will be granted certain customary minority rights in connection with its investment in ITC.

The closing of the acquisition of ITC is expected to occur in late 2016, and is subject to ITC and Fortis shareholder approvals, certain regulatory and federal approvals and other customary closing conditions.