Recent conversations between Evergy and an asset management firm based in New York City have the utility “evaluating opportunities that may create greater value.”
Last fall, Elliott Management Corporation approached Evergy with two strategic options to consider: explore the sale of Evergy or some other business combination as one option or increase its capital expenditures with subsequent reductions in operations and maintenance investments as another possibility.
In a news release, Evergy spokesperson Gina Penzig said Evergy is achieving “substantial cost savings” through its current operating plan and is on track to pass $500 million in cumulative savings through 2023. She also said Evergy has benefited from merger savings after Westar combined with Great Plains Energy in June 2018 as well as share repurchases, dividends and infrastructure investments.
Penzig says Evergy is open to evaluating all opportunities that create greater value, and she says Elliott has “different views” regarding Evergy’s strategic plan — but she also said there are considerations Evergy sees as important as it reviews Elliott’s conclusions about Evergy’s future direction.
Evergy has now employed Morgan Stanley as its financial advisor and Morgan, Lewis and Bockius LLP as its legal counsel as these discussions continue.
