By Dayton Business Journal

Progress Energy Inc. investors are expected to get a 3.2 percent annual dividend boost if Duke Energy Corp.'s $13.7 billion acquisition of Progress is completed.

Charlotte-based Duke (NYSE:DUK) has included that dividend figure in a new round of filings with the U.S. Securities and Exchange Commission on the proposed deal. Dukeâ¿¿s purchase of Raleigh, N.C.-based Progress (NYSE:PGN) requires approval from regulators and the companiesâ¿¿ shareholders.

The dividend calculations are being put forward to win investorsâ¿¿ support of the transaction.

Under the merger, Progress shareholders would receive 2.6125 shares of Duke common stock for every Progress share they hold. The current annual Duke dividend is 98 cents per share.

That means Progress shareholders would receive $2.56 (98 cents times 2.6125) after the conversion.

The current Progress annual dividend is $2.48. Hence the 8-cent, or 3.2 percent, boost in the dividend.

Dukeâ¿¿s existing shareholders would hold 63 percent of the combined company, with Progress shareholders holding 37 percent.

The proposed acquisition, announced last week, is an all-stock transaction. The deal values Progress shares at $46.48 each, or $13.7 billion in total equity value. Duke also will assume $12.2 billion in debt.

Duke provides electricity to about 685,000 customers and natural gas service to 400,000 customers in Southwest Ohio.

Copyright 2011 American City Business Journals

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