October 31, 2006 - Press releases
Montreal, October 31, 2006 - Énergir Limited Partnership (TSX: GZM.UN) has reached an important milestone in the process for the acquisition of Green Mountain Power Corporation (NYSE: GMP), the second largest electricity distributor in Vermont.
Today, at a special meeting, a large majority of 97 percent of GMP’s shareholders present or represented voted in favour of merging the utility with Northstars Merger Subsidiary Corporation, a wholly-owned subsidiary of Northern New England Energy Corporation (NNEEC). The votes cast represented 72 percent of the total shares outstanding and eligible to vote.
NNEEC, a wholly-owned subsidiary of Énergir Limited Partnership (Énergir), has been active in New England’s energy industry since 1986 through Vermont Gas Systems and since 1999 through Portland Natural Gas Transmission System (PNGTS).
On June 22, 2006, Énergir announced an offer to purchase Green Mountain Power Corporation for cash of US$35 per common share, representing a total purchase price of approximately US$187 million.
Upon learning the news of the decision by GMP’s shareholders, Robert Tessier, President and Chief Executive Officer of Énergir stated: “This approval is proof of the confidence in our Company. It takes Énergir one step further in its targeted development strategy.”
The remaining steps for the conclusion of the transaction involve the approval of Vermont state and U.S federal regulatory authorities. The entire approval process should be completed by the spring of 2007. After the closing, GMP will become a wholly-owned subsidiary of NNEEC.
Green Mountain Power Overview
Green Mountain Power (GMP) is a public utility operating company that transmits, distributes and sells electricity and utility construction services in the State of Vermont. GMP is the second largest electricity distributor in Vermont with 195 employees serving over 90,000 customers and close to US$250 million in revenues. GMP is regulated by the Vermont Public Service Board, which sets electricity rates for the customers and the allowed return on equity for the company.
With more than $2.6 billion of assets and more than 1,500 employees in Québec and over 100 in Vermont, Énergir is a leading Québec energy company and one of Canada's largest natural gas distributors. Énergir serves about 164,000 customers in Québec through an underground pipeline network of almost 10,000 km.
Énergir, through its wholly-owned subsidiary Northern New England Energy Corporation, owns the sole natural gas distributor in Vermont, Vermont Gas Systems, which serves about 38,000 customers, and has an indirect significant ownership interest in a natural gas transportation company, Portland Natural Gas Transmission System (PNGTS).
Énergir also owns a significant investment interest in a natural gas transportation enterprise (Trans Québec & Maritimes) and in an enterprise specializing in underground natural gas storage facilities (Intragaz). Énergir Plus, a subsidiary of Énergir, provides maintenance and repair services for natural gas equipment, urban cooling and heating systems (CDH Solutions & Operations) and leased water heaters, including electric water heaters (HydroSolution). Through various subsidiaries and affiliates, Énergir is also active in water and waste water infrastructure diagnosis and rehabilitation (Aqua Data and Aqua-Rehab) and fibre optics (MTO Telecom).
Public and governmental affairs