AltaGas to buy Pacific Northern for C$230 million

Mon Oct 31, 2011 7:49am EDT
 
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(Reuters) - AltaGas Ltd (ALA.TO: Quote) agreed to acquire Pacific Northern Gas Ltd PNG.TO for about C$230 million ($231.7 million) in cash.

AltaGas, which is involved in natural gas extraction and transmission, energy services and power generation, will pay C$36.75 a share, which is a premium of 20.5 percent to Pacific Northern stock's close on Friday.

In February, Pacific Northern, which delivers natural gas to customers in west-central British Columbia, had sold its 50 percent stake in Pacific Trail -- a 300-mile joint venture pipeline originating at Summit Lake, British Columbia.

($1 = 0.993 Canadian Dollars)

(Reporting by Aftab Ahmed in Bangalore; Editing by Gopakumar Warrier)