NEW YORK (TheStreet) -- Shares of Westar Energy (WR) are soaring by 8.07% to $57.20 in pre-market trading on Tuesday, as Great Plains Energy (GXP) plans to purchase the electric utility for roughly $8.6 billion in cash and stock.
Westar shareholders will receive $60 per share, representing a 13% premium to Westar's closing price of $52.92 on Friday.
The transaction is valued at about $12.2 billion, including Westar's $3.6 billion in debt.
Westar and Great Plains Energy expect the deal to close in the spring of 2017.
After the deal closes, Great Plains Energy CEO Terry Bassham will become chairman and CEO of the combined company. Westar Energy CEO Mark Ruelle will remain in his current role until the closing of the transaction.
Shares of Great Plains Energy are down by 9.66% to $28 in pre-market trading.
Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of A+.
Westar Energy's strengths such as its increase in net income, good cash flow from operations, expanding profit margins, largely solid financial position with reasonable debt levels by most measures and solid stock price performance outweigh the fact that the company has had somewhat disappointing return on equity.
You can view the full analysis from the report here: WR
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.