Kansas City-based utility Evergy Inc. reached an agreement with activist investor Elliott Investment Management LP and Bluescape Energy Partners LLC to add two new members to its board and change the makeup of its Finance Committee, in addition to a deal that will allow Bluescape to buy about $115 million in newly issued common shares.
The new board members are Bluescape Executive Chairman C. John Wilder and former U.S. Sen. Mary Landrieu, who represented Louisiana. Wilder also will chair the Finance Committee, which now also includes Evergy CEO David Campbell, Landrieu, Paul Keglevic and Tony Isaac, Evergy announced in a Friday release.
Bluescape will have the option to buy more Evergy common stock during the next three years at a share price that exceeds the current market price by 20%. Bluescape is an alternative investment firm focused on long-term performance in the energy and utility sectors.
Evergy (NYSE: EVRG) also reaffirmed its commitment to the company’s five-year Sustainability Transformation Plan (STP), which it envisions playing a key role in efforts to hit growth rates of 6% to 8% a year from 2019 through 2024. The STP calls for about $4.8 billion in new investment, including in wind and solar power and battery storage. The program aims to cut Evergy’s emissions 85% by 2030 compared with 2005 levels, a more aggressive goal than the previous one of 80% by 2050. The STP investment is to include money to upgrade Evergy’s electrical grid and improve customer service platforms.
“Through improved efficiency and operating performance, increased infrastructure investments, and the transition of our generation fleet, we will provide our customers with sustainable, reliable and affordable energy while driving superior shareholder value,” Campbell said in the release.
The moves represent the latest round of changes driven by Elliott, which had pushed Evergy to restructure or sell itself. In February 2020, Evergy and Elliott reached a deal to avert a sale but study options in both areas.
Elliott began pressing Evergy for change in October 2019, criticizing Evergy for earnings and rate base growth that trailed its utility peers and investing billions in stock buybacks rather than infrastructure.
Evergy CEO Campbell came on board in December from Dallas-based Vistra Energy Corp., where he was CFO, and earlier this month, Kirkland Andrews became CFO after filling the same role at NRG Energy Inc.