Duke Energy to Buy Piedmont Natural Gas for $4.9 Billion
October 26 2015 - 8:20AM
Dow Jones News
Duke Energy Corp. said Monday that it had struck a deal to
acquire Piedmont Natural Gas Co. in a deal worth about $4.9
billion, adding roughly 1 million natural-gas customers to its
base.
Under the terms of the pact, Piedmont shareholders will receive
$60 a share, which represents a 40% premium from the stock's
closing price on Oct. 23.
In addition, Duke Energy will also assume approximately $1.8
billion in Piedmont debt. Duke said it would finance the deal with
a combination of debt, between $500 million and $750 million of
newly issued paper, and other cash sources.
Piedmont's stock has pushed to all-time highs recently and is up
17% in the past three months. Duke shares during that time rose
2.9%.
"We look forward to welcoming Piedmont's employees and 1 million
customers in the Carolinas and Tennessee to Duke Energy," said Lynn
Good, CEO of Duke Energy.
The deal is pending regulatory and Piedmont shareholders'
approval and the companies aim to close the transaction by the end
of next year.
Duke and Piedmont are already partners on the Atlantic Coast
Pipeline, a $5 billion natural-gas pipeline that the companies say
would be the first "major" one to serve eastern North Carolina.
When the deal is completed, Piedmont will operate as a business
unit of Duke Energy and keep its name and headquarters in southeast
Charlotte. Duke Energy will Piedmont board member to its board, and
a Piedmont executive will run Duke's natural gas operations in the
Carolinas, Tennessee, Ohio and Kentucky.
Last week, the Charlotte, N.C.,-based Duke reached an $81
million settlement agreement to end a class-action lawsuit alleging
it gave improper rebates to some large electric customers of its
Ohio subsidiary.
Write to Ezequiel Minaya at ezequiel.minaya@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
October 26, 2015 08:05 ET (12:05 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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