CHATHAM, ON, Sept. 11 /CNW/ - Union Gas Limited announced today that it
has received Board of Directors approval to initiate the redemption of all
preference shares Union Gas has issued and outstanding. This share redemption
would be effective January 1, 2009. The redemption would be undertaken in
order to implement a new corporate legal structure that achieves financial
benefits which far exceed share redemption expenses.
Union Gas will require approval from the Ontario Energy Board in
connection with an internal share transfer that, together with the share
redemption, would ultimately lead to the conversion of Union Gas into an
unlimited liability company.
Union Gas reserves the right to not proceed with the redemption of the
preference shares or the other reorganization actions. Should Union Gas
determine to proceed with the redemption, it will issue a formal notice of
redemption to the holders of preference shares in accordance with the
preference share rights and restrictions.
Union Gas currently has the following classes of preference shares issued
1. 47,672 5.5% Cumulative Redeemable Class A Preference Shares,
2. 90,000 6% Cumulative Redeemable Class A Preference Shares, Series B;
3. 49,500 5% Cumulative Redeemable Class A Preference Shares, Series C;
4. 4,000,000 4.79% Cumulative Redeemable Convertible Class B Preference
Shares, Series 11.
Union Gas is an integrated natural gas storage, transmission and
distribution company serving about 1.3 million residential, commercial and
industrial customers in more than 400 communities in northern, south-western
and eastern Ontario. Union Gas is a Spectra Energy company. Spectra Energy
Corp (NYSE: SE), a FORTUNE 500 company, is one of North America's premier
natural gas infrastructure companies serving three key links in the natural
gas value chain: gathering and processing, transmission and storage, and
distribution. For nearly a century, Spectra Energy and its predecessor
companies have developed critically important pipelines and related
infrastructure connecting natural gas supply sources to premium markets. Based
in Houston, Texas, the company operates in the United States and Canada
approximately 18,000 miles of transmission pipeline, 265 billion cubic feet of
storage, natural gas gathering and processing, natural gas liquids operations
and local distribution assets. Spectra Energy Corp also has a 50 percent
ownership in DCP Midstream, the largest natural gas gatherer and processor in
the United States. For more information, visit www.spectraenergy.com.
For further information:
For further information: Andrea Stass, Phone: (519) 436-5490