UGI CORP. TO REORGANIZE INTO A HOLDING COMPANY
UGI CORP. TO REORGANIZE INTO A HOLDING COMPANY VALLEY FORGE, Pa., Dec. 19 /PRNewswire/ -- Directors of UGI Corp.
(NYSE: UGI) have authorized the reorganization of the Pennsylvania natural gas and electric utility and national marketer of propane into a holding company, it was announced today.
UGI is presently an operating utility. Its wholly owned AmeriGas subsidiary is the nation's third largest propane marketer. James A. Sutton, chairman and chief executive officer, said the holding company structure "would best enable the company to pursue its growth strategies in utilities and propane." Sutton said UGI expects to obtain the necessary regulatory and shareholder approvals over the next six to nine months. "As a holding company, UGI would establish separate lines of business," Sutton explained, "and manage and grow each line of business independently with financing that is consistent with the competitive practices of its industry." For shareholders, he said it would provide the best opportunity for UGI's share price to reflect fully the sum of the values of each line of business. He said it would benefit utility ratepayers and regulators by facilitating the regulatory process through a clear delineation of the areas of UGI's business which properly are subject to regulation. "The day to-day operations of our gas and electric utilities and AmeriGas would not be affected," he added. As reported, UGI had been evaluating various organizational structures since the company began divesting non-strategic businesses and changed its corporate direction to focused growth in utilities and propane. /delval/ -0- 12/19/91 /CONTACT: Vince Testa of UGI, 215-337-1000/ (UGI) CO: UGI Corporation ST: Pennsylvania IN: UTI SU: RCN
MP-KA -- PH029 -- 4027 12/19/91 15:18 EST
|Printer friendly Cite/link Email Feedback|
|Date:||Dec 19, 1991|
|Previous Article:||CRUM AND FORSTER/CRUMP E&S SIGN DEFINITIVE AGREEMENT FOR THE SALE OF LONDON BROKERS, LTD.|
|Next Article:||/ C O R R E C T I O N -- CHRYSLER CORPORATION /|