|SEMCO ENERGY, Inc. Closes on Acquisition of ENSTAR|
PORT HURON, Mich., Nov. 2 /PRNewswire/ -- SEMCO ENERGY, Inc. (Nasdaq: SMGS) today announced it has finalized the acquisition of ENSTAR Natural Gas Company and Alaska Pipeline Company (together known as ENSTAR). The Anchorage-based natural gas distribution and natural gas transmission companies were formerly owned by Ocean Energy, Inc. (NYSE: OEI).
William L. Johnson, Chairman and Chief Executive Officer of SEMCO ENERGY, Inc., made the announcement.
"I am pleased to add ENSTAR as a division of SEMCO ENERGY," Johnson said. "ENSTAR is an excellent addition to our natural gas business. This acquisition propels SEMCO ENERGY forward on the path we have outlined to significantly grow the company."
SEMCO ENERGY, Inc. also owns SEMCO ENERGY GAS COMPANY, a distribution company with more than 250,000 customers in Michigan's Lower and Upper Peninsulas.
SEMCO ENERGY, Inc. in July agreed to acquire ENSTAR for approximately $290 million cash, which includes the purchase of approximately $60 million of ENSTAR debt held by Houston, Texas-based Ocean Energy. The purchase will be initially financed through a short-term credit facility from a syndicate of banks until permanent financing of equity and long-term debt is arranged. With the completion of the acquisition, SEMCO ENERGY will be reorganized so that ENSTAR and SEMCO ENERGY GAS COMPANY become divisions of SEMCO ENERGY. The ENSTAR acquisition will be accounted for using the purchase method of accounting.
The acquisition was approved by the Regulatory Commission of Alaska and the Federal Trade Commission.
SEMCO ENERGY was represented in the transaction by Banc America Securities, who served as financial advisor. Bank of America provided bridge financing.
In addition to its natural gas divisions, SEMCO ENERGY owns SEMCO ENERGY
VENTURES. This unregulated division acquires and operates businesses involved
in gas engineering and quality assurance services, pipeline construction
services, propane distribution, intrastate pipelines and natural gas storage
in various regions of the United States.
|"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding SEMCO Energy's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.|