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Emera increases dividend following acquisition of TECO

 
The new Emera, TECO Energy logo
The new Emera, TECO Energy logo
Published July 5, 2016

Emera Inc., new parent company of TECO Energy, announced Tuesday that it would increase its annual common share dividend to $2.09 from $1.90 and extend its 8 percent annual dividend growth target through 2020 from 2019.

The company credited the "significant earnings and cash accretion expected from the TECO Energy acquisition" along with growth potential for the merged businesses for the dividend increase and target extension.

The utility, based in Halifax, Nova Scotia, announced in November it would acquire TECO, which includes Tampa Electric, Peoples Gas and New Mexico Gas, for $10.4 billion in cash and the assumption of debt. The deal closed last week.