MEDIA / Nova Corp To Sell Natural Gas Marketing Unit
December 3, 1997
NOVA TO SELL PAN-ALBERTA
Nova Corp. yesterday expanded its corporate makeover, announcing it will sell its Pan-Alberta Gas Ltd. natural gas marketing unit, now under the Nova Gas International umbrella.
The decision comes in the wake of a move by Nova Corp. two weeks ago to cleave itself into two independent public and completely separate and pipeline operations and chemical business firms.
Nova made the move after a languishing share price indicated -- and executive and investor sentiment concluded -- the value of Nova's assets and operations were not being adequately reflected in the stock price.
The decision to sell off Pan-Alberta, one of Canada's top tier gas marketing firms, is an effort to give the marketer greater flexibility -- and more access to capital, said Nova Gas International Ltd. president Kent Jespersen.
"Pan-Alberta and its management team have a very good strategy that is going to need somebody who is prepared to provide the kind of financial backing the company could use to do the kind of things it wants to," said Jespersen.
"It would be better that it's someone other than Nova (who) provides it," he added, noting Nova is not in the position to provide that backing.
"The management and ourselves and the board of Pan-Alberta have all come to the conclusion just recently that it would be best if it was owned by a third party."
Pan-Alberta is an aggregator and marketer of gas serving 435 Canadian producers and markets 1.6 billion cu. ft. of gas per day to Canada and the U.S.
The company also owns Pan-Alberta Gas (U.S.) Inc., which exports Canadian gas into the U.S. and Northwest Pacific Energy Marketing Inc., which contracts for gas purchases and sales in B.C.
|
