PNG ANNOUNCES CONSOLIDATION OF ITS SHARES INTO ONE CLASS OF COMMON SHARES AND COMPLETION OF SALE OF DUKE ENERGY INTEREST TO TRICOR
PNG also announced the completion today of the sale by Duke Energy of its 40 percent interest in PNG to Tricor Acquisition (STP) Inc. a subsidiary of Tricor Pacific Capital, Inc. (Tricor). Tricor acquired the shares as nominee for Tricor Pacific Capital Partners (Fund III), Limited Partnership, a
Roy Dyce, President and CEO of PNG said, "The conversion of the Class A and B shares into a single class of common voting shares is a significant benefit to the Company's existing public shareholders. Also, the investment by Tricor indicates a strong belief in the ability of PNG's management to enhance shareholder value. PNG looks forward to working with Tricor in continuing to provide a high degree of secure and reliable service to PNG's customers."
Rod Senft, Tricor's Managing Director said, "Tricor is excited about its investment in PNG. It fits with our strategy of investing in companies with strong earnings, good business fundamentals and a capable management team that has invested with us. Tricor strongly supports PNG's review of its strategic alternatives, including the potential conversion to an income trust."
Scotia Capital Inc. advised PNG on the strategic aspects of this transaction and will continue to assist the Company in the evaluation of options to enhance shareholder value, which include the potential conversion of PNG to an income fund. This conversion is subject to regulatory and shareholder approval and no application for the required approvals has yet been made.
Headquartered in Vancouver, British Columbia, Pacific Northern Gas Ltd. (TSX:PNG.A/ PNG.PR.A) owns and operates natural gas transmission and distribution systems. The Company's western transmission line extends from the Duke Energy Gas Transmission (formerly Westcoast Energy) system north of