Shares of natural gas distributor Semco Energy rose more than 30% after the company agreed to be acquired by Texas-based electric distribution services company Cap Rock Holding for $352 million in cash.
Cap Rock Holding, which took Cap Rock Energy Corp. private last year, said it would pay $8.15 a share, a 36% premium to Semco's Thursday closing price of $6 on the New York Stock Exchange. Cap Rock also would assume $515 million in debt in the deal.
Semco said its Series B preferred stockholders would receive $213.07 a share plus an additional premium calculated at closing.
Under the agreement, Semco may seek alternative proposals within 35 days. If it accepts a superior offer, Semco will pay a break-up fee and other expenses to Cap Rock.
Cap Rock will maintain current compensation and benefits levels for employees for at least two years after the deal closes. It will also retain Semco's management and headquarters in Port Huron, Mich., the statement said.