AltaGas buys PNG

ACIFIC NORTHERN Gas Ltd and AltaGas Ltd. have entered into an agreement pursuant to which a wholly-owned subsidiary of AltaGas will acquire

  • Oct. 31, 2011 6:00 a.m.

PACIFIC NORTHERN Gas Ltd and AltaGas Ltd. have entered into a definitive agreement pursuant to which a wholly-owned subsidiary of AltaGas will acquire all of the issued and outstanding common shares of PNG for $36.75 in cash in respect of each common share of PNG.

The cash consideration represents a premium of 20 per cent to PNG’s closing trading price on the TSX on Oct. 28 and a 28 per cent premium based on the volume weighted average trading price of PNG shares on the TSX for the 20 prior trading days. The proposed transaction values PNG at approximately $230 million.

“The Board of Directors of PNG has determined that the proposed transaction represents a compelling opportunity for our shareholders to achieve full and fair value for their PNG shares,” said Robert Chase, PNG’s Chairman. “Following the sale of PNG’s interest in Pacific Trail Pipelines in February 2011, a special committee of the board of directors undertook a thorough review of PNG’s strategic alternatives. After careful consideration of these alternatives, including  a recommendation from the special committee and advice from our financial advisor, the board of directors of PNG unanimously recommends that shareholders vote in favour of the proposed transaction.

Roy Dyce, president and CEO of PNG added “This transaction is in the best interests of our shareholders, customers, employees and other stakeholders. Among the reasons we recommend the proposed transaction to our shareholders are the size of the premium, the immediate liquidity and the certainly of value the cash consideration  offers, and the fact that we believe AltaGas’ offer fairly values the $20 million contingent payment that PNG will receive if the Kitimat liquefied natural gas project proceeds.

“We look forward to joining with AltaGas in continuing our mutual history of delivering safe, reliable service to our customers. AltaGas’ proven capabilities will enhance PNG’s ability to realize its potential growth opportunities.”PNG’s largest shareholder, together with the PNG directors and senior officers who hold PNG shares, have agreed to support the transaction and vote their shares in favour of the transaction. These shareholders collectively own or exercise control or direction over approximately 25 per cnet of PNG’s shares on a fully diluted basis.

Just Posted

Upper Skeena Recreation Centre evacuated after ammonia leak detected

The leak was related to refrigerators responsible for ice maintenance of the skating rink

Skeena Voices | The perfect fit

Seamstress Elaine Craig opened her own customized dress shop to empower women

B.C. offers early retirement, training fund for forest workers

Communities eligible for $100,000 for permanent closures

Laundry an essential cycle to protect Terrace firefighters from cancer

Fire hall getting a minor renovation, new washer and dryer this fall

VIDEO: Drone footage documents work to free salmon at Big Bar landslide

Video shows crews working to remove rocks and wood, and transporting salmon by helicopter

The Northern View announces inaugural Tyee Fishing Derby in Prince Rupert

More than $7,000 up for grabs for biggest legal salmon and halibut

Defense says burden of proof not met in double murder case against Victoria father

Closing statements begin in trial for man accused of killing daughters Christmas 2017

B.C. dog breeder banned again after 46 dogs seized

The SPCA seized the animals from Terry Baker, 66, in February 2018

Surrey mom allegedly paid $400,000 for son in U.S. college bribery scam

Xiaoning Sui, 48, was arrested in Spain on Monday night

Three dogs found shot dead in Prince George ditch

The three adult dogs appeared to be well cared for before being found with gunshot wounds, BC SPCA says

B.C. party bus company to be monitored after 40 intoxicated teens found onboard

Police received tip teens and young adults were drinking on party buses and limousines in Surrey

Rick Mercer calls out Conservative candidate in B.C. for fake meme

‘Not true. All fake. Please Stop,’ tweeted Rick Mercer in response

Bear killed in Kimberley after chasing girl, wreaking havoc on town

This particular brown-coloured bear has been the subject of many calls this summer; very food habituated, CO says

Most Read