Summary
Atmos Energy Corporation (ATO) announced on June 17, 2004, a significant strategic move: a definitive agreement to acquire substantially all of the operations of TXU Gas Company, a subsidiary of TXU Corp., for $1.925 billion in cash. This transaction, expected to close by December 31, 2004, is subject to regulatory approvals and other customary conditions. Importantly, Atmos Energy will not assume any of TXU Gas's outstanding debt, and the purchase price includes approximately $121 million in working capital.
Key Highlights
- 1Atmos Energy to acquire TXU Gas operations for $1.925 billion in cash.
- 2Acquisition is expected to be accretive to earnings.
- 3No assumption of TXU Gas's outstanding debt by Atmos Energy.
- 4Transaction includes approximately $121 million in working capital.
- 5Acquisition anticipated to close by December 31, 2004.
- 6Financing initially planned through commercial paper, supported by a committed bank credit facility.
- 7Atmos Energy leadership scheduled to discuss the acquisition with securities analysts and webcast the presentation.
Frequently Asked Questions
The primary purpose of this filing is to announce Atmos Energy Corporation's definitive agreement to acquire substantially all of the operations of TXU Gas Company.
The acquisition price is $1.925 billion in cash. Atmos Energy plans to initially fund this through commercial paper, supported by a committed 364-day bank credit facility.
No, the acquisition agreement explicitly states that Atmos Energy will not assume any of TXU Gas's outstanding debt.
The closing of the acquisition is subject to the satisfaction of customary conditions and applicable regulatory approvals.