Central Vermont shareholders approval sale of company to Gaz Métro

MONTREAL – Gaz Métro Limited Partnership says shareholders of Central Central Vermont Public Service Corporation (NYSE:CV) have overwhelmingly approved the company’s US$702 million sale to the Quebec-based natural gas distributor.

Gaz Metro said Friday the shareholder vote the day before was needed before the two companies could complete the friendly cash and debt deal announced in July.

The agreement would lead to the merger of Vermont’s two largest electrical utilities and also make Gaz Metro – Quebec’s biggest gas distributor – the U.S. state’s dominant power seller.

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“This is an important milestone in the sale process,” said Pierre Despars, Gaz Metro’s chief financial officer.

“We are confident of obtaining the additional approvals needed to conclude this acquisition by next spring or summer.”

In the sale, Central Vermont shareholders will get US$35.25 per common share when the transaction closes.

Earlier this week, the two utility companies got approval from the U.S. Federal Trade Commission to proceed with the transaction.

The deal to acquire Vermont’s largest utility must also be approved by the Federal Energy Regulatory Commission and the Vermont Public Service Board. That is expected some time next year.

In making its July bid, Gaz Metro topped an earlier deal Central Vermont had struck with Fortis Inc. (TSX:FTS), a big Newfoundland-based power company with operations in Canada and abroad.

If the deal closes as expected next year, Gaz Metro would merge Central Vermont with Green Mountain Power, a subsidiary of Gaz Metro that is Vermont’s second-largest electric utility.

The transaction will create the 75th largest electricity distributor in the United States, serving nearly 250,000 customers or about 70 per cent of Vermont electrical needs .