In an effort to grow its nonregulated business sector, ColumbiaEnergy Group’s Columbia Propane Corp. recently announced a tenderoffer to acquire National Propane Partners for $80.4 million. Theoffer expires April 9. National Propane shareholders will vote inearly May.

In addition to paying $12 each for 6.7 million shares ofNational Propane, Columbia offered to refinance $141 million ofNational’s debt. The combined propane company would serve a totalof 510,000 customers from the Mid-Atlantic and Northeast to theSoutheast, Midwest, and western regions of the U.S. In 1998,National Propane sold 144 million gallons of propane and Columbiasold 66.5 million gallons.

Columbia has set a goal to have 30% of its operating revenuegenerated from nonregulated activities by year-end 2001. Al Rankin,a Columbia spokesman, said this offer demonstrates Columbia’sintent to achieve that goal. “This would be a good acquisition forColumbia Propane. Propane is a big part of our nonregulatedbusinesses, and it has continued to grow and be profitable for us.”

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