MidAmerican Energy Holdings Company Completes Sale of Subsidiaries to KCS Energy Inc.

Strategic Insights -

MidAmerican Energy Holdings Company has finalized the sale of its subsidiaries, InterCoast Oil and Gas Company, GED Energy Services Inc., and InterCoast Gas Services Company, to KCS Energy Inc. of Edison, N.J. The transaction, which was previously agreed upon in November 1996, involved a cash payment of approximately $210 million and the issuance of 435,000 warrants to purchase KCS common stock. The warrants, which have a four-year term and an exercise price of $45 per share, were a key component of the deal. This sale marks a significant development for MidAmerican Energy Holdings Company, which has three subsidiaries: MidAmerican Energy Company, MidAmerican Capital Company, and Midwest Capital Group.

Key Takeaways:

  • MidAmerican Energy Holdings Company has completed the sale of its subsidiaries, InterCoast Oil and Gas Company, GED Energy Services Inc., and InterCoast Gas Services Company, to KCS Energy Inc. for approximately $210 million in cash.
  • The transaction included the issuance of 435,000 warrants to purchase KCS common stock, with a four-year term and an exercise price of $45 per share.
  • The warranties are a significant component of the deal, offering KCS Energy the opportunity to acquire additional shares in the company.
  • MidAmerican Energy Holdings Company, a utility holding company headquartered in Des Moines, Iowa, has a total of three subsidiaries: MidAmerican Energy Company, MidAmerican Capital Company, and Midwest Capital Group.
  • The sale of these subsidiaries marks a strategic move for MidAmerican Energy Holdings Company, potentially allowing the company to focus on its core operations and explore new opportunities.

Statistics:

  • $210 million: The approximate cash payment received by MidAmerican Energy Holdings Company in the sale of its subsidiaries.
  • 435,000: The number of warrants to purchase KCS common stock issued as part of the deal.
  • 4 years: The term of the warrants, during which time they can be exercised to purchase KCS common stock.
  • $45: The exercise price of the warrants, the price at which the holder can purchase a share of KCS common stock.
  • 1996: The year in which MidAmerican Energy Holdings Company and KCS Energy Inc. announced a definitive agreement for the sale of the subsidiaries.

Sources:

  • MidAmerican Energy Holdings Company
  • KCS Energy Inc.
  • InterCoast Oil and Gas Company
  • GED Energy Services Inc.
  • InterCoast Gas Services Company
  • MidAmerican Energy Company
  • MidAmerican Capital Company
  • Midwest Capital Group