Kinder Morgan to sell Terasen business |
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Mon, 26 Feb 2007 21:56
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HOUSTON (AP) - Pipeline operator Kinder Morgan Inc. said Monday it will sell Terasen Inc. to Canada-based Fortis Inc. for about $3.7 billion Canadian ($3.19 billion).The sale will complete Kinder Morgan's exit from the retail utility business and comes after a previous agreement to sell its U.S. retail operations.Terasen's principal assets include Terasen Gas Inc. and Terasen Gas (Vancouver Island) Inc., which comprise a large regulated distribution business that delivers natural gas and piped propane to about 900,000 customers in British Columbia.The deal, which is subject to certain closing conditions and regulatory approvals, is expected be completed by mid-year. It does not include assets of Kinder Morgan Canada.Kinder Morgan said the sale will allow it to focus on its core businesses of building and operating pipelines and terminals.The company expects a 'substantial' book loss from the sale. Proceeds will be used to pay down debt.Fortis said the acquisition will almost double its customer base to about 1.9 million.Kinder Morgan said Fortis, which has holdings in electricity distributors, hotels and utilities, plans to keep Terasen's management and employees on board.The sale has been approved by Kinder Morgan's board and the sponsors of the company's pending privatization transaction.Kinder Morgan shares rose 3 cents to $105.88 in afternoon trading on the New York Stock Exchange.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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