NGI The Weekly Gas Market Report / NGI All News Access

Vectren Acquisition of DPL Clears DOJ

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. 20, 1999).

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.

Copyright ©2018 Natural Gas Intelligence - All Rights Reserved.
ISSN © 2577-9877 | ISSN © 1532-1266
Comments powered by Disqus