TAMPA, Fla.--(BUSINESS WIRE)--In preparation for the expected closing of the merger of TECO Energy, Inc. (NYSE: TE) with Emera US Inc., a wholly owned indirect subsidiary of Emera Incorporated (TSX: EMA), in accordance with the agreement and plan of merger among TECO Energy, Emera US Inc. and Emera Incorporated, the board of directors of TECO Energy today declared a special pro-rated dividend at the current rate until the closing of the merger. The New Mexico Public Regulation Commission voted unanimously to approve the merger at its meeting on June 22, 2016. TECO Energy and Emera are awaiting the filing of the NMPRC’s written order. That filing will complete the final required regulatory approval and accordingly, all conditions precedent to completing the merger will have been fulfilled other than the customary closing conditions. Closing is expected to occur on or about July 1, 2016.
The board of directors declared a dividend of $0.002527 per share per day that will accrue from May 16, 2016 (the prior TECO Energy dividend record date), until and including the day prior to the effective day of the merger or until the next regularly scheduled record date of Aug. 15, 2016, whichever occurs first. This dividend is the daily equivalent of the current quarterly dividend rate of $0.23 per share. In the event the merger closes on or before Aug. 15, 2016, the dividend will be paid as soon as practicable following completion of the merger to shareholders of record as of the close of business on the last trading day prior to the closing of the merger. In the event the closing has not occurred on or before Aug. 15, 2016, the dividend will be paid on the normal quarterly payment date of Aug. 26, 2016, to holders of record as of the close of business on Aug. 15, 2016.
TECO Energy Inc. (NYSE: TE) is an energy-related holding company with regulated electric and gas utilities in Florida and New Mexico. Tampa Electric serves nearly 725,000 customers in West Central Florida; Peoples Gas System serves nearly 365,000 customers across Florida; and New Mexico Gas Co. serves more than 515,000 customers across New Mexico.
Note: This press release contains forward-looking statements related to the pending merger of TECO Energy with Emera US Inc., which are subject to the inherent uncertainties in predicting future results and conditions. Actual results may differ materially from those forecasted. The forecasted results are based on the company's current expectations and assumptions, and the company does not undertake to update that information or any other information contained in this press release, except as may be required by law. Factors that could impact actual results include: the ability to successfully close the merger on the anticipated schedule, if at all. Additional information is contained under "Risk Factors" in TECO Energy, Inc.'s Annual Report on Form 10-K for the period ended Dec. 31, 2015.