Valener announces a $75 million subscription of units of Gaz Metro under a private placement
MONTREAL, June 28, 2012 /CNW Telbec/ – Valener Inc. (“Valener“) (TSX: VNR) is pleased to announce that it has completed a
subscription of units of Gaz MÃ©tro Limited Partnership (“Gaz MÃ©tro“) for approximately $75 million by subscribing under a private
placement of Gaz MÃ©tro for 5,027,370 units of Gaz MÃ©tro at a price
of $15.00 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 $260 million by Gaz MÃ©tro by way of a private
placement under which Gaz MÃ©tro inc. (“GMi“) also subscribed for its pro rata share of units. This equity offering was performed in connection with
Gaz MÃ©tro’s acquisition of Central Vermont Public Service Corporation,
the closing of which was announced yesterday, and the proceeds of the
offering will be used to reimburse short term borrowings made under
GMi’s existing credit facility to finance a portion of the acquisition
and for general corporate purposes.
Overview of Valener, Gaz MÃ©tro and GMi
Valener owns an economic interest of approximately 29% in Gaz MÃ©tro.
Valener therefore has a stake in the energy industry and benefits from
Gaz MÃ©tro’s diversified profile, both in terms of geography and
business segment. Valener also owns a 24.5% indirect interest in the
wind power projects jointly developed with Gaz MÃ©tro and Boralex Inc.
on the private lands of SÃ©minaire de QuÃ©bec. Valener may also pursue
its own development projects and acquisition strategies subject to a
non-competition agreement in favour of Gaz MÃ©tro and to applicable
limitations under its credit facility. Valener’s common shares are
listed on the Toronto Stock Exchange under the “VNR” trading symbol. www.valener.com.
With over $3.8 billion in assets as at March 31, 2012, Gaz MÃ©tro is
Quebec’s leading natural gas distributor. Its 10,000 kilometre network
serves 300 municipalities. Gaz MÃ©tro has operated in this regulated
industry since 1957 and is the trusted energy provider of its customers
in Quebec and Vermont, who choose natural gas for its competitive
price, efficiency, comfort and environmental benefits. Gaz MÃ©tro is
also present in the electricity distribution market, natural gas
transportation and storage, the development of innovative energy
projects such as wind power, natural gas as fuel for the transportation
industry and biomethanation. Gaz MÃ©tro is committed to the satisfaction
of its customers, Partners (GMi and Valener), employees and the
communities it serves. www.gazmetro.com
GMi mainly holds an economic interest of approximately 71% in Gaz MÃ©tro,
for which it acts as the General Partner and a financing vehicle.
SOURCE VALENER INC.