TXU has announced that it’s shareholders have approved a merger agreement with Texas Energy Future Holdings Limited Partnership (TEF). TEF was formed by a group of investors led by Kohlberg Kravis Roberts (KKR) and Texas Pacific Group (TPG) to facilitate the merger.
More than 340 million shares, over 95 per cent of the shares voted, were in favour of the merger. Approval required a two-thirds majority of the outstanding shares.
‘We are pleased that the shareholders have demonstrated with their votes that they agree with the board’s recommendation that the merger is in their best interests,’ said TXU chairman and CEO C. John Wilder. ‘We will remain diligent in our efforts to obtain the additional regulatory approval and to close the transaction as soon as possible.’
Under the terms of the merger agreement TXU shareholders will be entitled to $69.25 in cash for each share of TXU common stock held, upon close of the merger. The merger, which requires approval by the Nuclear Regulatory Commission and completion of other customary closing conditions, is expected to close in the fourth quarter of 2007.
Shareholders also approved the selection of Deloitte & Touche as TXU‘s independent auditor for the year 2007 and rejected two shareholder proposals – one related to the adoption of quantitative goals for emissions at it’s existing and proposed generating plants, and another requesting a report on political contributions and expenditures.