Southern Sells Two Natural Gas Businesses to South Jersey Industries for $1.7 Billion

   By Allison Prang

A Southern Co. subsidiary is planning to sell two of its natural-gas utility businesses to South Jersey Industries Inc. for $1.7 billion.

In the deal announced Monday, Pivotal Utility Holdings Inc. is selling the operating divisions of both Elizabethtown Gas in New Jersey and Elkton Gas in Maryland. The all-cash deal is expected to close in the third quarter, Southern said.

Southern Chief Executive Thomas Fanning said in prepared remarks the deal will strengthen the company's balance sheet.

Elizabethtown Gas, started in 1855, has more than 286,000 natural-gas customers. Elkton Gas, started in 1863, has about 6,000 customers. South Jersey Industries will maintain commitments to staff at both operations, according to Southern.

South Jersey Industries, which owns South Jersey Gas, services seven counties in southern New Jersey and has about 381,000 customers.

Southern has 9 million customers and provides natural gas in seven states.

Shares in Southern were down 0.3% in premarket trading on low volume. Shares in South Jersey Industries were inactive.

Write to Allison Prang at allison.prang@wsj.com

(END) Dow Jones Newswires

October 16, 2017 09:21 ET (13:21 GMT)

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