MONTREAL, June 27, 2012 /CNW Telbec/ - Valener Inc. ("Valener") (TSX: VNR) is pleased to announce that Gaz Métro Limited Partnership ("Gaz Métro"), through its wholly owned subsidiary, Northern New England Energy Corporation ("NNEEC"), has today completed the acquisition of Central Vermont Public Service Corporation ("CVPS"), the largest electricity distributor in Vermont.
It is expected that CVPS will consolidate in the coming months its operations with those of Green Mountain Power Corporation ("Green Mountain Power"), the second-largest electricity distributor in the State, acquired by Gaz Métro in 2007.
"We are pleased that Gaz Métro has successfully completed its acquisition of CVPS. Valener salutes and supports this growth initiative which is directly in line with Gaz Métro's strategic plan," said Pierre Monahan, Chairman of the Board of Valener.
"In regard to its acquisition of CVPS, Valener will contribute approximately $75 million to Gaz Métro's capital, equal to its interest in Gaz Métro, which will enable it to participate significantly in the growth of the latter's activities," Mr. Monahan continued.
Valener in brief
Valener owns an economic interest of approximately 29% in Gaz Métro. Valener therefore has a stake in the energy industry and benefits from Gaz Métro'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 Métro and Boralex Inc. on the private lands of Séminaire de Québec. Valener may also pursue its own development projects and acquisition strategies subject to a non-competition agreement 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 "VNR" trading symbol. www.valener.com.
Gaz Métro in brief
With the acquisition of CVPS, the value of Gaz Métro's assets is now close to $5 billion. Gaz Métro is a major energy distributor. It owns the only gas distributor in Vermont and is the major natural gas distribution company in Québec, where its more than 10,000-km underground distribution network serves some 300 municipalities. Gaz Métro is also involved in the electricity distribution market, in the transportation and storage of natural gas, as well as in the development of innovative energy projects such as wind power, natural gas as a fuel for the transportation industry and biomethanation.
Gaz Métro is dedicated to satisfying its 180,000 Quebec and 295,000 Vermont customers it serves, as well as its Partners: Valener and Gaz Métro inc. www.gazmetro.com
CVPS in brief
CVPS, the largest electricity distribution company in Vermont, serves some 160,000 customers in 163 towns and municipalities. It has been awarded the national Emergency Recovery Award from the Edison Electric Institute on four occasions, and has been ranked among the most reliable U.S. companies by Forbes magazine for more than five years.
Green Mountain Power in brief
Green Mountain Power produces, transmits, distributes and sells electricity in Vermont and is a leader in the production of wind and solar energy. It serves more than 95,000 customers. www.greenmountainpower.com
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 (the "management of the manager"), and are based on information currently available to the management of the manager and assumptions about future events. Such forward looking statements include statements relating to the merger of CVPS with Green Mountain Power and the expansion and growth of CVPS and Green Mountain Power's operations and potential synergies resulting from the merger. Forward-looking statements involve known and unknown risks and uncertainties and other factors beyond the control of the management of the manager. A number of factors could cause actual results of Valener and Gaz Métro to differ significantly from the current expectations as expressed in the forward-looking statements, including, but not limited to the terms of the decisions rendered by regulatory agencies, the general economic conditions, the competitiveness of natural gas in relation to other energy sources, the reliability of natural gas supplies, the integrity of the natural gas distribution system, the exchange rates fluctuations, the evolution of development projects, the capability to materialize attractive acquisitions, as well as obtaining related financing and effecting integration, the capability to obtain future financing and other factors described in the Annual Information Form of Valener for the year ended September 30, 2011 under the item "Risk Factors".
Although these forward-looking statements are based upon what the management of the manager believes to be reasonable assumptions, the management of the manager 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 the management of the manager 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 is included in the Management Discussion & Analysis of Valener dated May 11, 2012. This document is available on SEDAR at www.sedar.com and on Valener's website at www.valener.com.