Shareholders approve PNG sale

The vote to sell Pacific Northern Gas to AltaGas was overwhelming.

  • Dec. 15, 2011 3:00 p.m.

CALGARY-BASED AltaGas is well on its way to taking over Pacific Northern Gas following approval by the latter’s shareholders Dec. 12.

More than 99 per cent of the gas utility’s shareholders voted in favour of the deal which is worth $230 million through a combination of paying cash and taking on debt.

PNG will cease to exist as a publicly-traded company and will become a subsidiary of AltaGas.

Under the conditions of a deal announced the end of October, shareholders received $36.75 a share, which represented a 20 per cent premium over the value of a share on Oct. 28, 2011 and a 28 per cent premium of the average price for the 20 trading days before that.

AltaGas has other energy utilities in Canada and is becoming a significant run-of-river player in BC thanks to its development of the 195 megawatt Forrest Kerr project on the Iskut River in northwestern BC.

The company also has plans for two smaller run of river projects in the vicinity of Forrest Kerr.

Together, the three run of river projects will cost approximately $1 billion which, when added to the PNG purchase, gives AltaGas a significant presence in the northwest.

PNG maintains a distribution system in northeastern BC and one in northwestern BC. It also provides propane to a small number of customers in Granisle.

The company began to diversify several years ago into run of river projects of its own on the Sunshine Coast.

AltaGas received the approval of the BC Utilities Commission at the end of November for the purchase of PNG and by the BC Supreme Court Dec. 13, the day after the shareholder vote.

The company is now waiting for regulatory approval by the federal competition bureau.

The purchase by AltaGas made 2011 a lucrative year for PNG shareholders beginning when it sold its ownership stake in the Pacific Trails Pipeline project for $50 million.

The Pacific Trails Pipeline will feed the Kitimat LNG liquefied natural gas plant being planned for Kitimat.

PNG first in March and then in May announced dividend payments of $3 per share each time from the proceeds of the Pacific Trails deal.





Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Rio Tinto responds to U.S. aluminum import tariffs

The tariffs were imposed by President Donald Trump Aug. 6

Black bear spotted at Christy Park in Terrace

Bear could be the same individual spotted on the bench recently

Coastal GasLink breaks ground on meter station in Kitimat

Meter station marks final point on pipeline that stretches from Northeast B.C.

Signs of the times: Terrace sign makers’ businesses evolve during COVID-19 pandemic

Scaife Signs and Silvertip Promotions & Signs Inc. created COVID-19 related materials in Terrace

New statue placed at George Little Park in Terrace

Kermode bear cub to commemorate Terrace Kinsmen’s contribution to the park’s renovations

QUIZ: Do you know the truth?

In what has been described as a post-truth era, how much do you know about truth and lies?

1 year since a B.C. teen died in a skate park, his family still waiting for charges

Carson Crimeni’s final moments were broadcast on social media

NHL playoffs: Canucks to meet St. Louis Blues in Round 1

Vancouver takes on defending champs beginning Wednesday

Simon Cowell breaks his back falling from electric bike

Incident happened at his home in California

VIDEO: Internet famous Yukon-based bhangra dancer explores Vancouver Island

Gurdeep Pandher spreads joy through dance, forms cross-cultural connections amid pandemic

Unofficial holidays: the weird and wonderful things people celebrate around the world

On any given day of the year, there are several strange, silly or serious holidays to observe

Moving on: Tanev scores 11 seconds into OT as Canucks oust Wild

Vancouver beats Minnesota 5-4 to move into first round of NHL playoffs

Gene editing debate takes root with organic broccoli, new UBC research shows

Broccoli is one of the best-known vegetables with origins in this scientific haze

VIDEO: U.S. Air Force pilot does fly-by for B.C. son amid COVID border separation

Sky-high father-son visit plays out over White Rock Pier

Most Read