Virginia Gas Co.’s shareholders last week approved a merger planwhich would allow the company to fold under Bedminster, NJ-basedNUI Corp. as a wholly-owned subsidiary. Under the terms of themerger, NUI Corp. will acquire all of Virginia Gas’ shares ofcommon stock for $4.00 per share in NUI common stock. The exchangeratio will be established at a time more near the merger’scompletion. Based on Virginia Gas’ outstanding shares, thetransaction value of the company’s equity is placed at $22 million.

“We are excited that our shareholder vote has moved us a stepcloser to becoming amember of the NUI family of companies,”explained Michael L. Edwards, Virginia Gas’ CEO. “We are bringingtogether talents from our two companies that will create astrategically important energy asset in this region.”

NUI will benefit from Virginia Gas’ significant undergroundstorage and pipeline facilities. The Abingdon, VA-based companyalso focuses on natural gas exploration, production, gathering,marketing and distribution.

“Virginia Gas will be key to our energy trading strategy in themid-Atlantic markets by further strengthening our natural gastrading and wholesale activities in the region to meet the demandfor natural gas and power generation,” said John Kean, Jr., NUI’sCEO.

The union still awaits approvals from state regulatory agenciesin Virginia, New Jersey and North Carolina and could be completedas early as the end of 2000.

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