UTILICORP UNITED EXPRESSES INTEREST FOR PURCHASE OF CITIZENS GAS & COKE UTILITY
UTILICORP UNITED EXPRESSES INTEREST FOR PURCHASE OF
CITIZENS GAS & COKE UTILITY
KANSAS CITY, Mo., Nov. 14 /PRNewswire/ -- UtiliCorp United (NYSE: UCU) today announced it has sent an "expression of interest" letter to Indianapolis government officials for the purchase of Citizens Gas & Coke Utility.
UtiliCorp proposes to buy the municipally owned utility and coke operations for a cash purchase price of between $250 million and $300 million, plus the assumption of certain obligations to be identified upon further due diligence.
UtiliCorp Chairman and President Richard C. Green Jr. said, "We have researched the Citizens Gas opportunity for the past several years and we believe now is the time to move forward in this process. Citizens Gas would be a beneficial addition to UtiliCorp and fits our growth strategy."
Green said UtiliCorp would operate Citizens Gas as a separate division, as it has with the other acquisitions in the past several years.
The most recent UtiliCorp acquisition, the new WestPlains Energy division, was finalized this past Sept. 30. WestPlains was the former Centel Electric companies of Kansas and Colorado.
Citizens Gas serves nearly 240,000 gas customers in the Marion County, Ind., area. Approximately 1,200 employees work for Citizens Gas & Coke. Latest statistics available show Citizens Gas & Coke total revenues at $298.8 million, total income at $7.9 million, and total assets at $471.7 million.
Based in Kansas City, UtiliCorp provides gas and electric service to nearly one million customers in eight states and the province of British Columbia. The company also is engaged in various non-regulated energy and utility related enterprises.
/CONTACT: Phil Hermanson of UtiliCorp, in Indianapolis, 317-635-2770; or after today in Kansas City, 816-421-6600/
(UCU) CO: UtiliCorp United; Citizens Gas & Coke Utility ST: Missouri, Indiana IN: UTI SU: TNM GK -- NY076 -- 1143 11/14/91 14:13 EST