August 9, 2018

Merger costs drain CT Water's 2Q net

PHOTO | Contributed
PHOTO | Contributed
A Connecticut Water truck outside Middlesex Hospital.

Connecticut Water Service Inc. posted lower second-quarter net income due, in large part, to costs tied to the Clinton utility's proposed $1.1 billion cash merger with California's SJW Group.

For the quarter ended June 30, CT Water announced Thursday it recorded net income of $4.7 million, or 39 cents a diluted share, down from $8.4 million, or 75 cents a diluted share, netted in the year-ago period.

Second-quarter revenues rose to $31.5 million vs. $29.5 million a year ago.

SJW Group is one of California's biggest water utilities and owns San Jose Water Co.

For the first half of 2018, CT Water has netted $3.5 million on total revenues of $58 million vs. $12.5 million on $53.7 million in revenues at this time last year.

On Monday, CT Water and SJW Group said they amended their proposed $1.1 billion merger offer to all cash from stock to mute "distractions'' from competing bidders. CT Water's Connecticut rival, Eversource, has not yet responded with a counterbid to their revised proposal.

SJW Group is one of the West Coast's largest water purveyors and CT Water is one of Connecticut's and New England's largest water utilities.

The "merger of equals" was originally set to close by year-end but is now expected to close in the first quarter of 2019, CT Water officials said.

Read more

New phase for CT Water, SJW merger

CT Water nixes Eversource's second bid proposal

CT Water, SJW merger continues after solicitation attempt

CT regulators pass on water merger decision

Eversource rejects CT Water's bidding-war invitation

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