/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
CALGARY, Feb. 2, 2012 /CNW/ - Veresen Inc. ("Veresen") (TSX: VSN) is pleased to announce that all
conditions precedent for its previously announced acquisition (the
"Acquisition") of the Hythe/Steeprock midstream gas gathering and
processing complex from Encana Corporation have been satisfied. The
Hythe/Steeprock complex includes two natural gas processing plants with
combined functional capacity of 516 MMcf/d as well as approximately
40,000 hp of compression and 370 km of gas gathering lines. The parties
anticipate closing the Acquisition on or about February 9, 2012.
Concurrent with the closing of the Acquisition and upon satisfaction of
certain escrow release conditions, each subscription receipt issued by
Veresen on December 16, 2011 will be converted, without payment of
additional consideration or further action by the holder, into one
common share of Veresen. In addition, a dividend equivalent payment of
$0.1666 per subscription receipt will be payable to holders of
subscription receipts in respect of the dividends declared by Veresen
for the months ending December 31, 2011 and January 31, 2012, net of
applicable withholding taxes. Based upon the anticipated closing date
of February 9, 2012, the common shares issuable on the deemed exercise
of the subscription receipts are expected to be available for delivery
to holders of subscription receipts no later than February 13, 2012.
About Veresen Inc.
Veresen is a publicly-traded dividend paying corporation based in
Calgary, Alberta, that owns and operates energy infrastructure assets
across North America. Veresen is engaged in three principal
businesses: a pipeline transportation business comprised of interests
in two pipeline systems, the Alliance Pipeline and the Alberta Ethane
Gathering System; a midstream business which includes ownership
interests in a world-class natural gas liquids extraction facility near
Chicago and other natural gas and NGL processing energy infrastructure;
and a power business with renewable and gas-fired facilities and
development projects in Canada and the United States, and district
energy systems in Ontario and Prince Edward Island. Veresen and each of
its pipeline, midstream and power businesses are also actively
developing a number of greenfield projects. In the normal course of
its business, Veresen and each of its businesses regularly evaluate and
pursue acquisition and development opportunities.
Veresen's common shares, subscription receipts and 5.75% convertible
unsecured subordinated debentures, Series C due July 31, 2017 are
listed on the Toronto Stock Exchange under the symbols "VSN", "VSN.R"
and VSN.DB.C", respectively. For further information, please visit www.vereseninc.com.
Forward Looking Information
Certain information contained herein relating to, but not limited to,
Veresen and its businesses constitutes forward-looking information
under applicable securities laws. All statements, other than statements
of historical fact, which address activities, events or developments
that Veresen expects or anticipates may or will occur in the future,
are forward-looking information. Forward-looking information typically
contains statements with words such as "may", "estimate", "anticipate",
"believe", "expect", "plan", "intend", "target", "project", "forecast"
or similar words suggesting future outcomes or outlook. Forward-looking
statements in this news release include, but are not limited to,
statements with respect to the timing of completion of the Acquisition.
Additional information on risks, uncertainties and factors that could
affect Veresen's operations or financial results is included in its
filings with the securities commissions or similar authorities in each
of the provinces of Canada, as may be updated from time to time.
Readers are also cautioned that such additional information is not
exhaustive. The impact of any one risk, uncertainty or factor on a
particular forward-looking statement is not determinable with certainty
as these factors are independent and management's future course of
action would depend on its assessment of all information at that time.
Although Veresen believes that the expectations conveyed by the
forward-looking information are reasonable based on information
available on the date of preparation, no assurances can be given as to
future results, levels of activity and achievements. Undue reliance
should not be placed on the information contained herein, as actual
results achieved will vary from the information provided herein and the
variations may be material. Veresen makes no representation that actual
results achieved will be the same in whole or in part as those set out
in the forward-looking information. Furthermore, the forward-looking
statements contained herein are made as of the date hereof, and Veresen
does not undertake any obligation to update publicly or to revise any
forward-looking information, whether as a result of new information,
future events or otherwise, except as required by applicable laws. Any
forward-looking information contained herein is expressly qualified by
this cautionary statement.
SOURCE Veresen Inc.
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