Vectren Corp. launched a sale process led by Bank of America Merrill Lynch following earlier takeover interest in the utility, according to a Feb. 6 report by Bloomberg News, citing DealReporter.
The report by DealReporter follows earlier indications in August 2017 that Vectren had received unsolicited third-party interest in buying the Midwest natural gas and electric utility from at least one unnamed buyer, according to Bloomberg.
News of the sale process launch pushed Vectren stock up more than 5% to end the day at $61.79 per share on more than four-times average volume. Vectren's board may be interested in a takeout price above $70 per share, the report added.
A timeline for the sale process, including bid submissions, has yet to be communicated, though DealReporter suggested that only a limited number of potential buyers may be invited to bid, Bloomberg reported.
Vectren representatives did not immediately respond to a request for comment Feb. 6.
The utility serves about 900,000 natural gas customers in central and southern Indiana and a neighboring portion of central-western Ohio and 111,000 electricity customers in southwestern Indiana. Its regulated utility operations are Indiana Gas Co. Inc., known as Vectren North; Southern Indiana Gas and Electric Co. Inc., known as Vectren South; and Vectren Energy Delivery of Ohio Inc.
