Delta Natural Gas Acquired by Peoples Gas

Winchester, KY-based Delta Natural Gas, which serves about 36,000 customers in central and southeastern Kentucky, entered into a definitive agreement to merge with an affiliate of Peoples Natural Gas.

The tranaction is expected to close by the end of the year, making Delta a wholly owned subsidiary of PNG Companies LLC, the parent of Peoples. Delta and will continue to be regulated by the Kentucky Public Service Commission. Current Delta employees will be retained after the merger, the companies said.

Peoples plans to increase Delta’s investments in infrastructure improvement projects. Delta’s customer rates will not be affected by the transaction, and one member of Delta’s board of directors will serve as an independent representative of Delta constituents’ interests.

Under the terms of the transaction, Delta shareholders will receive $30.50 in cash per Delta share, which represents a premium of 17% to Delta’s closing share price Feb. 17, the last trading day prior to the announcement of the agreement

Peoples, headquartered in Pittsburgh, PA, serves about 700,000 customers in Pennsylvania, West Virginia and Kentucky. Peoples is controlled by SteelRiver Infrastructure Fund North America LP.

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