NCNG Shareholders Approve Acquisition
Shareholders of North Carolina Natural Gas Corp. (NCNG) approved
the company's acquisition by Raleigh, NC-based Carolina Power &
Light. The companies are awaiting approval by the North Carolina
Utilities Commission and the South Carolina Public Service
Commission. CP&L anticipates commission approval and completion
of the acquisition in July.
More than 97% of the NCNG shares represented voted in favor of
the acquisition. About 70% of the total shares were voted.
CP&L announced Nov. 11, 1998, that it would acquire NCNG for
$354 million in company stock, as part of CP&L's plan to become a
total energy provider for its customers (See Daily GPI Nov. 12, 1998). NCNG distributes
gas to 178,000 customers in eastern and central North
Carolina. CP&L provides electricity and energy services to 1.2
million customers in the Carolinas.
The merger is intended to move CP&L along on its goal of
becoming a one-stop energy shop and large regional energy company.
"We have plans for significant additions of gas-fired power plants
over the next 10 years to meet our customers' needs. Access to a
competitively priced gas supply is integral to our long-term
strategy," said CP&L CEO William Cavanaugh III at the time the
deal was announced.
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