Agreement to Sell KMI to Investor Group Receives Approval From Three State Regulatory Commissions
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HOUSTON, March 2: Kinder Morgan, Inc. (NYSE:KMI) today announced that state regulatory utility commissions in Colorado, Nebraska and Wyoming have approved the proposed acquisition of KMI by investors including Chairman and CEO Richard D. Kinder, other senior members of KMI management, co-founder Bill Morgan, current board members Fayez Sarofim and Mike Morgan, and affiliates of Goldman Sachs Capital Partners, American International Group, Inc., The Carlyle Group and Riverstone Holdings LLC.
KMI shareholders voted in December 2006 to approve the proposed merger agreement, and the only remaining approval is from the California Public Utilities Commission (CPUC). The CPUC previously issued a procedural schedule which could delay the closing of the transaction until the second quarter of 2007, but the company is working diligently to try to expedite the matter. Because all of the regulatory approvals have not yet been obtained, the termination date for the going private transaction has been extended to Aug. 28, 2007, in accordance with the merger agreement.
Under the terms of the merger agreement, promptly following the closing of the merger, KMI stockholders (other than Knight Holdco LLC, Knight Acquisition Co., subsidiaries of KMI, stockholders who have perfected their appraisal rights under Kansas law and stockholders defined in the KMI proxy statement as Rollover Investors) will receive $107.50 in cash, without interest, for each share of KMI common stock held. This represents a premium of approximately 27 percent over $84.41, the closing price of KMI stock on Friday, May 26, 2006, the last trading day before the investor group made its proposal to take the company private.
Kinder Morgan, Inc. is one of the largest energy transportation, storage and distribution companies in North America. It owns an interest in or operates approximately 43,000 miles of pipelines that transport primarily natural gas, crude oil, petroleum products and CO2; more than 150 terminals that store, transfer and handle products like gasoline and coal; and currently provides natural gas distribution service to over 1.1 million customers. KMI owns the general partner interest of Kinder Morgan Energy Partners (NYSE:KMP), one of the largest publicly traded pipeline limited partnerships in the United States. Combined, the companies have an enterprise value of more than $35 billion.
Source: Kinder Morgan, Inc.
CONTACT: Larry Pierce, Media Relations, +1-713-369-9407, or Mindy Mills, Investor Relations, +1-713-369-9490, both of Kinder Morgan, Inc.
Web site: http://www.kindermorgan.com/
