Vectren Acquisition of DPL Clears DOJ
Three-month-old Vectren Corp., the Indiana-based energy holding
company formed when Indiana Energy Inc.and Sigcorp Inc. joined
forces, now only awaits approval from various federal and state
commissions before it completes its acquisition of the natural gas
distribution assets of The Dayton Power and Light Co. (DPL).
Vectren officials were notified last week that the U.S. Department
of Justice has completed its investigation of the proposed
acquisition, clearing a major roadblock for the company.
When completed, the acquisition will add nearly 305,000
residential commercial, industrial and government customers to
Vectren's customer base, which already numbers 650,000. Company
officials say that the purchase of the gas distribution assets from
DPL is expected to grow the company's earnings by 4% on average
over the next five years.
"We continue to make excellent progress toward the completion of
the transaction," said Vectren CEO Niel C. Ellerbrook. "We set out
an aggressive schedule to complete the transaction and believe we
are on track to achieve our goal of closing this summer."
Still to come are approvals from the Securities and Exchange Commission, the
Public Utilities Commission of Ohio and the Federal Communications Commission,
which would authorize the transfer of radio licenses held by DPL. DPL, based
in Dayton, OH, agreed to sell its retail gas distribution business originally
to Indiana Energy Inc. last December for $425 million in an all-cash sale
to be accounted for as a purchase (see NGI, Dec.
Vectren's service area cover nearly two-thirds of Indiana, and
the service area of DPL's natural gas business is contiguous to
Vectren's distribution system in East Central Indiana.
Vectren, headquartered in Evansville, IN, was officially formed in late March
by the merger of Indiana utility holding companies Indiana Energy Inc. and
SIGCORP Inc. The $1.9 billion holding company is the largest combined utility
in Indiana already (see NGI, June 21, 1999).
The company's utility group is composed of Southern Indiana Gas and Electric
Co., Indiana Gas Co. and Vectren Energy of Ohio. Vectren's non-regulated subsidiaries
and affiliates include energy marketing and management services, fiber optic-based
integrated communications services and utility-related services.
©Copyright 2000 Intelligence Press, Inc. All rights
reserved. The preceding news report may not be republished or
redistributed in whole or in part without prior written consent of
Intelligence Press, Inc.