Gaz Metro LP subsidiary Northern New England Energy Corp. (NNEEC) agreed to acquire Green Mountain Power Corp. (GMP), a Vermont power distributor, for US$35/share, $187 million total, all cash.

The deal is subject to the approval of the shareholders of GMP as well as Vermont and U.S. federal regulators, and is expected to be completed in approximately 12 months. The transaction is conditioned on, among other regulatory approvals and notices, the approval of the Vermont Public Service Board and FERC, and notice under the Hart-Scott-Rodino Act.

Following completion of the transaction, GMP will join Vermont Gas Systems and Portland Natural Gas Transmission System (PNGTS) as NNEEC’s New England-based energy subsidiaries. GMP will continue to be managed by its current management team.

GMP is a public utility operating company that transmits, distributes and sells electricity and utility construction services in Vermont. GMP is the second largest electricity distributor in Vermont with 195 employees serving more than 90,000 customers and close to US$250 million in revenues. GMP is regulated by the Vermont Public Service Board.

Gaz Metro is a leading Quebec energy company and one of Canada’s largest natural gas distributors. It serves about 164,000 customers in Quebec through a pipeline network of almost 10,000 km.

Gaz Metro, through NNEEC, owns the sole natural gas distributor in Vermont, Vermont Gas Systems, which serves about 38,000 customers, and has an indirect significant ownership interest in a natural gas transportation company, PNGTS.

Gaz Metro also has a 50% interest in TQM, a natural gas transportation company in Quebec, and in Intragaz, a business that specializes in underground natural gas storage.

Citigroup and Societe Generale Corporate and Investment Banking acted as Gaz Metro’s financial advisors in the transaction. Banc of America Securities LLC acted as exclusive financial advisor to GMP and rendered a fairness opinion to the Board of Directors of Green Mountain Power in connection with the transaction.

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