CMS Energy Corp. announced it sold 10 million primary shares ofcommon stock Friday in a block trade to Banc of America Securities,and deferred indefinitely its previously announced plans for aninitial public offering of up to 50% of its subsidiary, CMS Oil andGas Co. With the new issue, CMS Energy will have approximately131.3 million common shares outstanding.

CMS Energy netted proceeds of approximately $295.6 million fromthe sale, which will be used to repay debt.

“The issuance of CMS Energy common stock provides greater valueto shareholders at this time than the alternative of an initialpublic offering of stock in our exploration and productionsubsidiary,” said William T. McCormick, Jr., CMS Energy’s CEO.

The sale represents the initial offering from a shelfregistration filed with the Securities and Exchange Commission inDecember 2000. The company had announced in late November it wouldpursue an IPO to raise about $400 million, as well as acceleratethe issuance of $300 million of common stock to generate about $800million in cash and $450 million in equity to restore its balancesheet.

CMS Energy Co. has annual sales of $9 billion and assets ofabout $16 billion throughout the United States and around the worldwith businesses in electric and natural gas utility operations;independent power production; natural gas pipelines, gathering,processing and storage; oil and gas exploration and production; andenergy marketing, services and trading.

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