TRANSCANADA SIGNS NEW LETTER OF INTENT WITH RESPECT TO ALBERTA NATURAL GAS CO. AND PACIFIC GAS TRANSMISSION CO.
TRANSCANADA SIGNS NEW LETTER OF INTENT WITH RESPECT TO ALBERTA NATURAL GAS CO. AND PACIFIC GAS TRANSMISSION CO. CALGARY, Alberta, April 10 /PRNewswire/ -- TransCanada PipeLines (NYSE: TRP) announced today that it has signed a new letter of intent (the "letter of intent") with Pacific Gas and Electric Co. ("PG&E") (NYSE: PCG). This supercedes the agreement in principle dated Feb. 6, 1992, between the parties in connection with the possible acquisition of all of the shares of Pacific Gas Transmission Co. ("PGT"), a wholly owned subsidiary of PG&E and of the 49.98 percent interest of PGT in Alberta Natural Gas Co. Ltd. ("ANG") (Toronto, Montreal, Vancouver, Calgary: ANG). The parties continue to be interested in proceeding with the sale of the PGT shares to TransCanada but have agreed to defer their discussions regarding the transaction pending resolution of the restructuring of the gas purchase contracts between Alberta and Southern Gas Co. Ltd. ("A&S") and Canadian gas producers. TransCanada has acquired from PG&E a limited right of first refusal to acquire the PGT shares. Today's letter of intent provides that the parties will continue negotiations with a view to entering into an agreement for the purchase by TransCanada from PGT of the 49.98 percent interest of PGT in ANG (the "ANG shares") on or before June 10, 1992, for closing not later than June 30, 1992, subject to approval by their respective boards of directors, certain regulatory approvals and the completion by TransCanada to its satisfaction of its due diligence procedures. Assuming the transaction is completed, the price to be paid for the ANG shares reflects a discount to the current market price of ANG's shares. -0- 4/10/92 /CONTACT: Frank Dabbs of TransCanada PipeLines, 403-267-8525/ (TRP PCG ANG.) CO: TransCanada PipeLines Ltd.; Pacific Gas and Electric Co.; Alberta Natural Gas. Co. Ltd. ST: Alberta IN: OIL SU:
DM-JL -- LA029 -- 7471 04/10/92 21:12 EDT
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|Date:||Apr 10, 1992|
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