(Reuters) - Iberdrola USA will buy UIL Holdings Corp for about $3 billion to create a newly listed U.S. electric utility.
UIL shareholders will receive one share in the new company for each share they own plus $10.50 per share in cash, the companies said in a statement.
The proposed deal implies a total value of $52.75 per share, which includes the cash component, representing a 25 percent premium to UIL's closing price on Feb. 25.
UIL Chief Executive James Torgerson will become the new company's CEO.
(Reporting by Supriya Kurane in Bengaluru; Editing by Anupama Dwivedi)
