VALERO TO CONSIDER AN OFFERING TO ACQUIRE PUBLICLY OWNED COMMON UNITS OF VALERO NATURAL GAS PARTNERS, L.P.
SAN ANTONIO, Oct. 14 /PRNewswire/ -- Valero Energy Corporation (NYSE: VLO) announced today that it is considering making an offer to acquire the outstanding publicly traded common units of Valero Natural Gas Partners, L.P. (NYSE: VLP). A special meeting of the board of directors of Valero Energy Corporation has been called for Oct. 16, at which time the board will consider this proposal. Under the proposal, Valero Natural Gas Partners, L.P., would be merged with a subsidiary of Valero Energy, with the public holders of the common units receiving cash consideration of $11 per common unit. The purchase of the common units would be funded with proceeds from a convertible preference stock offering. If the proposal were approved by Valero Energy's board of directors, the proposal would then be presented to the board of directors of Valero Natural Gas Company, the general partner of Valero Natural Gas Partners, L.P. It is expected that the Valero Natural Gas board would form a special committee of outside directors to consider the proposal. The proposal would be subject to recommendation and approval by the special committee and completion of financing for the transaction, and would require the approval of a majority of holders of the common units. As of Oct. 14, 1993, 18,486,538 common units were outstanding, of which approximately 9.7 million were publicly traded, with the remaining common units being owned by subsidiaries of Valero Energy. Valero Energy is involved primarily in the refining of high-sulfur atmospheric residual oil into premium products, such as unleaded gasoline, at its specialized refinery in Corpus Christi, Texas, and in the marketing of those products. Through subsidiaries, Valero is general partner of and has an approximate 49 percent interest in Valero Natural Gas Partners, L.P., which has a 7,200-mile network of natural gas transmission and gathering lines throughout Texas; purchases natural gas for resale to markets throughout the United States and Mexico; provides third party gas transportation services; and is a major producer and marketer of natural gas liquids. -0- 10/14/93 /CONTACT: Keith Booke of Valero Energy Corporation, 210-246-2099/ (VLO VLP)
CO: Valero Energy Corporation; Valero Natural Gas Partners, L.P. ST: Texas IN: OIL SU: TNM
TW -- NY052 -- 2251 10/14/93 12:41 EDT
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|Date:||Oct 14, 1993|
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