AltaGas Aims for Asian Markets with Acquisition of Pacific Northern Gas
Calgary-based AltaGas Ltd. has entered into a definitive agreement with Vancouver-based Pacific Northern Gas Ltd. (PNG) to indirectly acquire all of the issued and outstanding common shares of PNG for C$36.75 cash per PNG share pursuant to a statutory plan of arrangement under the Business Corporation Act (British Columbia). Growing North American natural gas supply and continued attractive natural gas prices in Asian markets continue to support growth of an LNG industry in western Canada, PNG’s Western system aims to capitalize on the growing demand for additional pipeline capacity along the Summit Lake to Kitimat/Prince Rupert corridor. The transaction is valued at approximately C$230 million including assumed debt expected to approximate C$85 million and C$5 million preferred shares. AltaGas is an energy infrastructure business with a focus on natural gas, power and regulated utilities. Pacific Northern Gas owns and operates natural gas transmission and distribution systems.