Vectren draws three suitors in second round

14 March 2018 - 12:51 am UTC

Author(s): by Bhavna Kaul and Michael Shoeck
Two strategics and one infrastructure fund are courting Vectren [NYSE:VVC] as the sale process for the utility advances into the second round, said two sources briefed on the situation.
 
The first source briefed and a third source briefed on the situation said that they had heard CenterPoint Energy [NYSE:CNP] was one of the two strategics around the process.
 
A deal, if struck, could be announced in the spring with final bids expected to be collected in early April, two of the sources briefed said. One of these sources said the sale process is moving along “rapidly” as suitors continue doing due diligence.
 
In early February, this news service reported that Vectren kicked off a sale process with its financial advisor Bank of America Merrill Lynch. The Midwest gas and electric utility was in the midst of signing up a limited universe of buyers to participate in the process, the same report said.
 
Vectren and BofA Merrill Lynch declined to comment. CenterPoint did not return requests for comment.