TOPEKA, Kan. — The $12.2 billion sale of Topeka-based Westar Energy to Great Plains Energy has cleared several legal hurdles after parties challenging the deal have agreed to drop their lawsuits.
Missouri-based Great Plains is the parent company of Kansas City Power & Light.
The Topeka Capital-Journal (http://bit.ly/2cUJiyn ) reports that new Securities and Exchange Commission filings show the three complaints will be dropped. Two were in Kansas and one was in Missouri.
Westar and Great Plains Energy Inc. filed a more than 150-page proxy statement Aug. 25 related to the business deal, which must be approved not only by stockholders but by multiple regulatory agencies. Wednesday’s filling with the Security and Exchange Commission amended that initial statement with additional disclosures to resolve the legal challenges.
One of the Kansas complaints alleged that Westar Energy’s board of directors failed to obtain the best price for shareholders because of a process that discouraged third parties from submitting potentially better proposals.
A second complaint alleged the merger deprived shareholders of fair consideration for the rates and favored Great Plains Energy shareholders. And the third complaint alleged Great Plains failed to disclose certain material information in a previous filing.
Westar spokeswoman Gina Penzig said Wednesday’s filing added more details that cleared up questions the lawsuits brought forward.
“We don’t believe this will have any effect on the acquisition,” Penzig said.
The sale still faces a review by several regulatory agencies and shareholders. The Westar shareholder meeting will be Monday, Sept. 26 in Kansas, while the Great Plains shareholders will meet the same day in Missouri.
Information from: The Topeka (Kan.) Capital-Journal, http://www.cjonline.com