March 27, 2007 - Press releases
Montreal, March 27, 2007 - Gaz Métro Limited Partnership (TSX: GZM.UN), through its wholly owned subsidiary, Northern New England Energy Corporation (NNEEC), has taken the last regulatory step in the process to acquire Green Mountain Power Corporation (NYSE: GMP), the second-largest electricity distributor in Vermont. The Vermont Public Service Board approved the agreement and the plan to merge GMP with a wholly owned subsidiary of NNEEC. That subsidiary includes, among others, Gaz Métro’s activities in Vermont. The transaction is expected to close in the coming weeks.
“We are very pleased with the decision of the Vermont Public Service Board and we hope to soon complete the transaction begun in June 2006,” said Sophie Brochu, President and Chief Executive Officer of Gaz Métro.
Gaz Métro, through its wholly owned subsidiary NNEEC, in June 2006 signed an offer to purchase GMP for a cash consideration of $35 a share, for a total purchase price of approximately $187 million US.
In its decision, the Vermont Public Service Board noted that Gaz Métro’s 20-year presence in Vermont through Vermont Gas Systems is a guarantee of its long-term commitment to energy consumers in the State.
“Green Mountain Power is known for its responsible management, its commitment to energy efficiency and its promotion of energy solutions that respect the environment. These characteristics closely match the culture, values and initiatives adopted by Gaz Métro, which positively influenced our decision to acquire the company. We believe that this transaction offers the potential to strengthen those orientations within both our companies,” added Brochu.
Green Mountain Power at a glance
Green Mountain Power is a public service utility whose revenues approach $250 million US. GMP is the second-largest electricity distributor in Vermont, with 195 employees working to serve more than 90,000 customers. It transmits, distributes and sells electricity, as well as offering construction services for electrical grids in the State of Vermont. Once the transaction is closed, Green Mountain Power will continue to be managed by the current team based in Vermont.
Gaz Métro at a glance
With more than $2.7 billion of assets and over 1,500 employees in Québec, Gaz Métro is a leading Québec energy company and one of the largest natural gas distributors in Canada. It serves some 167,000 customers in Québec through its approximately 10,000 km underground system, while a subsidiary, Vermont Gas Systems, serves some 38,000 customers.
Gaz Métro also holds significant financial interests in two natural gas transmission companies (Trans-Québec - Maritimes PipeLine and Portland Natural Gas Transmission System) and in a company that specializes in underground reservoirs for the storage of natural gas (Intragaz). Subsidiaries of Gaz Métro offer repair and maintenance services for natural gas equipment (Gaz Métro Plus), urban air-conditioning and heating systems (CDH Solutions & Operations), and the rental of water heaters, including electric water heaters (HydroSolution). Through its various subsidiaries and joint ventures, Gaz Métro also operates in the diagnosis and rehabilitation of drinking water and wastewater systems (Aqua Data and Aqua-Rehab) and in fiber-optics (MTO Telecom).
Source: Frédéric Krikorian
Public Affairs Advisor
1717, rue du Havre, Montréal (Québec) H2K 2X3