VALENER ANNOUNCES A $29 MILLION SUBSCRIPTION OF UNITS OF GAZ METRO UNDER A
PRIVATE PLACEMENT
MONTREAL, Oct 7 /CNW Telbec/ - Valener is pleased to announce that it has completed its previously announced $29 million subscription of units of Gaz Métro Limited Partnership ("Gaz Métro") by subscribing under a private placement of Gaz Métro for 1,707,010 units of Gaz Métro at a price of $16.99 per unit. The subscription was made by Valener, pro rata based on its share of units outstanding, as part of an equity offering of approximately $100 million by Gaz Métro by way of a private placement under which Gaz Métro inc. ("GMi") also subscribed for its pro rata share of units.
The capital injection by Valener and GMi completed today followed the delivery of an issue notice by Gaz Métro on October 1, 2010 and the exercise on the same date by each of Valener and GMi of their pre-emptive rights under the limited partnership agreement of Gaz Métro, thereby maintaining their pro rata economic interests in Gaz Métro of approximately 71% for GMi and 29% for Valener.
Valener financed its subscription of new units by way of a drawdown under its credit facility in the amount of approximately $29 million.
Valener Overview
Valener is a new publicly listed corporation which holds an economic interest of approximately 29% in Gaz Métro. Valener therefore has a stake in the energy industry and benefits from the diversified profile of Gaz Métro, both geographically and by business segment. Valener has also been granted an option to acquire a 24.5% indirect interest in the wind power projects jointly developed directly or indirectly by Gaz Métro and Boralex Inc. on the private property of the Seigneurie de Beaupré. Valener may also pursue its own development projects and acquisition strategies subject to a non-competition undertaking 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 symbol "VNR". www.valener.com
Gaz Métro Overview
With over $3.6 billion in assets, Gaz Métro is Québec's leading natural gas distributor. Operating in this regulated industry for over 50 years, Gaz Métro has become the trusted energy provider to some 180,000 customers in Québec and 136,000 customers in Vermont while developing the skills and expertise needed to diversify beyond natural gas. Gaz Métro's prudent growth strategy has been marked by the successful entry into electricity distribution in Vermont and development of wind power projects in Québec. Offering historically strong and stable distributions and showing a competitive spirit, Gaz Métro is committed to its customers, Partners, employees and the community.
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 the intentions, plans, expectations and opinions of the management of Gaz Métro inc., as general partner of Gaz Métro, acting in its capacity as manager of Valener pursuant to an administration and management support agreement entered into between Valener and Gaz Métro on September 30, 2010, and are based on information currently available to management and assumptions about future events. Forward-looking statements involve known and unknown risks and uncertainties and other factors outside management's control. A number of factors could cause actual results of Gaz Métro and Valener to differ materially from the current expectations as expressed in the forward-looking statements.
Although these forward-looking statements are based upon what management believes to be reasonable assumptions, management 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 management assumes 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.
The complete version of the cautionary note regarding forward-looking statements as well as a description of the risk factors likely to affect Gaz Métro's and Valener's actual results are included in the Management Information Circular of Gaz Métro dated July 28, 2010. This document is available on SEDAR at www.sedar.com and on Gaz Métro's website at www.gazmetro.com.
For further information:
Investors and analysts Caroline Warren Investor Relations 514-598-3324 |
Media Marie-Noëlle Cano Media and Public Relations 514-598-3449 |
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