Avista Energy Operating Assets to Be Acquired by Coral Energy
April 17 2007 - 5:05PM
PR Newswire (US)
SPOKANE, Wash., April 17 /PRNewswire-FirstCall/ -- Avista Corp.
(NYSE:AVA) today announced that Avista Energy, Inc., a subsidiary
of Avista Corp., has signed a definitive agreement to sell
substantially all of its contracts and ongoing operations to Coral
Energy Holding, L.P. and certain of its subsidiaries (Coral
Energy), a subsidiary of Shell. The transaction is expected to
close by late second quarter or early third quarter 2007, following
the completion of certain contractual requirements, the receipt of
necessary regulatory approvals and the satisfaction of other
closing conditions. (Logo:
http://www.newscom.com/cgi-bin/prnh/20040128/SFW031LOGO ) The
agreement also includes the sale of the operating assets of Avista
Energy Canada, Ltd, which will be acquired by Coral Energy Canada
Inc., a subsidiary of Coral Energy. "This transaction is the
culmination of some very deliberate and strategic planning for
Avista Energy and Avista Corp.," said Gary Ely, Avista Corp.
chairman of the board and chief executive officer. "We had three
specific goals in mind -- to make sure Avista Energy customers
continue to receive the same high level of service they have come
to expect, to ensure that our valued employees are treated fairly,
and to realize a fair value for the business. The deal we've
constructed with Coral meets those goals, and we're pleased with
this outcome." Avista Energy will receive cash for the assets
acquired by Coral at approximately the book value of the assets at
closing. In addition, Avista Energy will liquidate other assets not
sold or transferred to Coral, including receivables, restricted
cash and deposits with counterparties. Over time the majority of
the proceeds from these transactions are expected to be reinvested
in Avista's utility business. Plans call for Avista Energy offices
in Spokane, Wash.; Great Falls, Mont.; and Vancouver, British
Columbia, to remain in their current locations, with most of the
employees being offered employment by Coral. "Integrating our
talented employees into a similar culture within Coral will benefit
our existing customers and our employees. Combined with the
financial resources of Coral, this is a transaction that is well
aligned in terms of operations and strategy," said Ely. NOTE: We
will host a conference call on April 18, 2007, at 2 p.m. ET to
discuss this news release, as well as to discuss first quarter 2007
preliminary earnings. The call is available at (866) 800.8652,
passcode: 11332891. A news release concerning first quarter
preliminary earnings will be issued at 7:05 a.m. ET, April 18,
2007. A replay of the conference call will be available through
April 25, 2007. Call (888) 286-8010, passcode 54299066 to listen to
the replay. The conference call will be archived at
http://www.avistacorp.com/ for one year. Avista Corp is an energy
company involved in the production, transmission and distribution
of energy as well as other energy-related businesses. Avista
Utilities is a company operating division that provides service to
345,000 electric and 304,000 natural gas customers in three western
states. Avista's non-regulated subsidiaries include Advantage IQ
and Avista Energy. Avista Corp.'s stock is traded under the ticker
symbol "AVA." For more information about Avista, please visit
http://www.avistacorp.com/. Avista Corp. and the Avista Corp. logo
are trademarks of Avista Corporation. This news release contains
forward-looking statements, including statements regarding the
expected sale of substantially all of Avista Energy's operating
assets and contracts. Such statements are subject to a variety of
risks, uncertainties and other factors, most of which are beyond
the company's control, and many of which could have a significant
impact on the company's operations, results of operations and
financial condition, and could cause actual results to differ
materially from those anticipated. In particular, as indicated
above, the consummation of the sale of Avista Energy's operating
assets and contracts is subject to the completion of certain
contractual requirements, the receipt of necessary regulatory
approvals and the satisfaction of other closing conditions. - 0717
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Lang, +1-509-495-2930, or , or Avista 24/7 Media Access,
+1-509-495-4174, all of Avista Web site: http://www.avistacorp.com/
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