Veresen Announces Satisfaction of all Conditions Precedent to the Completion of the Previously Announced Acquisition of Canadian

abarrelfull wrote on 06 Feb 2012 12:55
Tags: canada deals encana pipeline veresen

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Veresen Inc. ("Veresen") (TSX: VSN) is pleased to announce that all conditions precedent for its previously announced acquisition (the "Acquisition") of the Hythe/Steeprock midstream gas gathering and processing complex from Encana Corporation have been satisfied. The Hythe/Steeprock complex includes two natural gas processing plants with combined functional capacity of 516 MMcf/d as well as approximately 40,000 hp of compression and 370 km of gas gathering lines. The parties anticipate closing the Acquisition on or about February 9, 2012.

Concurrent with the closing of the Acquisition and upon satisfaction of certain escrow release conditions, each subscription receipt issued by Veresen on December 16, 2011 will be converted, without payment of additional consideration or further action by the holder, into one common share of Veresen. In addition, a dividend equivalent payment of $0.1666 per subscription receipt will be payable to holders of subscription receipts in respect of the dividends declared by Veresen for the months ending December 31, 2011 and January 31, 2012, net of applicable withholding taxes. Based upon the anticipated closing date of February 9, 2012, the common shares issuable on the deemed exercise of the subscription receipts are expected to be available for delivery to holders of subscription receipts no later than February 13, 2012.

• Veresen Announces Satisfaction of all Conditions Precedent to the Completion of the Previously Announced Acquisition of Canadian Midstream Assets

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