Valener announces that Gaz Métro has achieved a key step in acquiring CVPS

MONTREAL, Sept. 30, 2011 /CNW Telbec/ - Valener Inc. ("Valener"), which owns an economic interest of approximately 29% in Gaz Métro Limited Partnership ("Gaz Métro"), announces that Gaz Métro welcomes the decision by the shareholders of Central Vermont Public Service Corporation (NYSE: CV) ("CVPS") who accepted, by a very strong majority, the sale of the company to Gaz Métro at a meeting held on Thursday morning. This milestone was one of the essential steps to completing the purchase of CVPS.

"We are very pleased that the CVPS shareholders have clearly approved our purchase proposal. This is an important milestone in the sale process. We are confident of obtaining the additional approvals needed to conclude this acquisition by next spring or summer. The transaction provides benefits for all stakeholders: Vermont customers, CVPS' shareholders and Gaz Métro's unitholders," declared Pierre Despars, Executive Vice President, Corporate Affairs and Chief Financial Officer of Gaz Métro.

We remind readers that the agreement, announced on July 12, 2011, provides significant benefits for customers, communities, employees and shareholders, including customer savings in the order of US$144 million over 10 years. CVPS shareholders will receive US$35.25 per common share when the transaction closes.

Earlier this week, CVPS and Gaz Métro received approval from the Federal Trade Commission to proceed with the transaction, which also requires other regulatory approvals, including those of the Federal Energy Regulatory Commission (FERC) and the Vermont Public Service Board. These approvals should be secured by the spring or summer of 2012.

Once the transaction is concluded, CVPS and Green Mountain Power Corporation will combine their activities to form one stronger utility for Vermont residents. The company thus formed will be owned by Northern New England Energy Corporation, a wholly owned subsidiary of Gaz Métro, just like Vermont Gas Systems and Portland Natural Gas Transmission System.

Overview of Valener

Valener owns an economic interest of approximately 29% in Gaz Métro. Valener therefore has a stake in the energy industry and benefits from Gaz Métro's diversified profile, both in terms of geography and business segment. Valener also owns an indirect interest of 24.5% in the wind power projects jointly developed by Beaupré Éole General Partnership and Boralex Inc. on the private lands of Séminaire de Québec. Valener may also pursue its own development projects and acquisition strategies subject to a non-competition agreement in favour of Gaz Métro and to applicable limitations under its credit facility. Valener's common shares are listed on the Toronto Stock Exchange under the "VNR" trading symbol. www.valener.com

Overview of Gaz Métro

With over $3.5 billion in assets, Gaz Métro is Quebec's leading natural gas distributor. Its 10,000-kilometer network serves 300 municipalities. Active in this regulated industry since 1957, Gaz Métro is the trusted energy provider of customers in Quebec and Vermont who choose natural gas for its competitive price, efficiency, comfort and environmental benefits. Gaz Métro is also active in the electricity distribution market and is involved in natural gas transportation and storage, as well as the development of projects in areas such as wind power generation, natural gas fuel for the transportation industry, and biomethanation. Gaz Métro is committed to the satisfaction of its customers, partners (Gaz Métro inc. and Valener Inc.), employees and the communities in which it operates. www.gazmetro.com

Cautionary note regarding forward-looking statements

Certain statements contained in this press release may be forward-looking pursuant to applicable securities laws. Such forward-looking statements reflect Valener or Gaz Métro's view with respect to the acquisition of CVPS. Forward-looking statements involve known and unknown risks and uncertainties and other factors outside Valener or Gaz Métro's control. A number of factors could cause the acquisition of CVPS to differ materially from the current expectations as expressed in the forward-looking statements.

Although these forward-looking statements are based upon what Valener or Gaz Métro believe to be reasonable assumptions, Valener or Gaz Métro cannot assure investors that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this press release, and Valener or Gaz Métro assume no obligation to update or revise them to reflect new events or circumstances, except as required pursuant to applicable securities laws. You are cautioned not to place undue reliance on these forward-looking statements.

SOURCE VALENER INC.

For further information:

Media
Audrey Giguère
Media and Public Relations  
514-598-3449
Investors and analysts
Caroline Warren 
Investor Relations 
514-598-3324 

 

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