Rhode Island Acqn. Completed
National Grid PLC
25 August 2006
25 August 2006
NATIONAL GRID COMPLETES ACQUISITION OF NEW ENGLAND GAS RHODE ISLAND ASSETS
National Grid plc ('National Grid') yesterday completed the acquisition of the
Rhode Island assets of New England Gas Company from Southern Union Company. The
acquisition, for a cash consideration of $498m and the assumption of $77m of
debt, was announced on 16 February 2006.
With this acquisition, National Grid will add New England Gas' 245,000 natural
gas customers to the more than 477,000 electricity customers it already serves
in Rhode Island.
Michael E. Jesanis, President and Chief Executive Officer of National Grid's US
business, said, 'This transaction is an expression of our commitment to Rhode
Island and New England. It's also a natural fit as we expand our core energy
delivery business.'
The acquisition was approved by the Rhode Island Division of Public Utilities
and Carriers on 25 July 2006 and the waiting period under the Hart-Scott-Rodino
Antitrust Improvements Act expired on 3 April 2006.
Contact details:
National Grid
Investors
Alexandra Lewis +44 (0)20 7004 3170 +44 (0)7768 554879(m)
James Waite +44 (0)20 7004 3171 +44 (0)7977 440902(m)
Media
Chris Mostyn +44 (0)1926 655275 +44 (0)7879 668025(m)
Stewart Larque +44 (0)1926 655274 +44 (0)7831 864034(m)
Citigate Dewe Rogerson
Anthony Carlisle +44 (0)20 7638 9571 +44 (0)7973 611888(m)
Cautionary statement
This announcement contains certain statements that are neither reported
financial results nor other historical information. These statements are
forward-looking statements within the meaning of Section 27A of the Securities
Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934,
as amended. Because these forward-looking statements are subject to assumptions,
risks and uncertainties, actual future results may differ materially from those
expressed in or implied by such statements. Many of these assumptions, risks and
uncertainties relate to factors that are beyond National Grid's ability to
control or estimate precisely, such as delays in obtaining, or adverse
conditions contained in, regulatory approvals, competition and industry
restructuring, changes in economic conditions, currency fluctuations, changes in
interest and tax rates, changes in energy market prices, changes in historical
weather patterns, changes in laws, regulations or regulatory policies,
developments in legal or public policy doctrines, the impact of changes to
accounting standards, technological developments, the failure to retain key
management, the availability of new acquisition opportunities or the timing and
success of future acquisition opportunities. Other factors that could cause
actual results to differ materially from those described in this announcement
include the ability to continue to integrate the US and UK businesses acquired
by or merged with National Grid, the failure for any reason to achieve
reductions in costs or to achieve operational efficiencies, unseasonable weather
impacting on demand for electricity and gas, the behaviour of UK electricity
market participants on system balancing, the timing of amendments in prices to
shippers in the UK gas market, the performance of National Grid's pension
schemes and the regulatory treatment of pension costs, the impact of the
separation and sale by National Grid of four of its UK gas distribution networks
and any adverse consequences arising from outages on or otherwise affecting
energy networks owned and/or operated by National Grid.
For a more detailed description of these assumptions, risks and uncertainties,
together with any other risk factors, please see National Grid's filings with
the US Securities and Exchange Commission (and in particular the 'Risk Factors'
and 'Operating and Financial Review' sections in its most recent annual report
on Form 20-F). Recipients are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
announcement. National Grid does not undertake any obligation to release
publicly any revisions to these forward-looking statements to reflect events or
circumstances after the date of this announcement.
This information is provided by RNS
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