Shareholders of AGL Resources and Nicor Inc. Monday voted to approve the proposed merger of the companies. Shareholders of AGL Resources approved the issuance of shares of AGL Resources common stock as contemplated by the merger agreement with Nicor, and in a separate meeting Nicor shareholders voted to approve the merger.
“ This is an exciting transaction that makes strong financial and strategic sense for both companies ,” said John W. Somerhalder II, AGL Resources’ Chairman, President and Chief Executive Officer , who will hold the same role in the combined company. “ We are creating a leading natural gas distribution company with an exceptional platform for growth. The result will be sustained value creation for our shareholders and benefits for our customers, employees and the communities we serve. ”
“ Today marks an important step in the path toward merger completion ,” said Russ M. Strobel, Nicor’s Chairman, President and Chief Executive Officer. “ In combining with another industry leader, Illinois will become home to the natural gas distribution headquarters of a Fortune 500 company, and AGL Resources’ commitment to maintain employment levels and community investments will help make the transition as seamless as possible for our customers. We will continue to work with AGL Resources to prepare for the transition upon completion of the planned merger .”
Remaining approvals include the Illinois Commerce Commission, the state agency that regulates Nicor and establishes rates. The companies still expect to close the transaction in the second half of this year.
AGL Resources shareholders also approved the proposal to increase the maximum number of directors that may serve on its board of directors to 16. This action will facilitate the addition of four Nicor board members to the AGL Resources board of directors.
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Source: AGL Resources, June 14, 2011;