Brooklyn Union Explores Maximizing Value of Wholly-Owned Cogeneration Subsidiary

Strategic Insights -

Brooklyn Union, a leading gas distributor in the New York City boroughs, has announced that it is exploring ways to maximize the value of its wholly-owned cogeneration subsidiary, Gas Energy Inc. (GEI). This decision comes as a result of the deregulation in the electric industry, which has added to the value of efficient operations like GEI. The company has engaged UBS Securities Inc. as its financial advisor to assist in reviewing strategic options, including a possible merger or sale of the business, or enhancement and retention of all or parts of the business.

Key Takeaways:

  • Brooklyn Union has engaged UBS Securities Inc. as its financial advisor to assist in reviewing strategic options for Gas Energy Inc. (GEI).
  • GEI has a proven track record of successful plant development, operation, and fuel management, with interests in four gas-fired cogeneration facilities in the Northeast United States with a total generating capacity of 369 megawatts.
  • The company is exploring ways to maximize shareholder value through a possible merger or sale of GEI, or enhancement and retention of all or parts of the business.
  • Brooklyn Union distributes natural gas to 4 million residents in New York City boroughs, and has energy-related investments in gas exploration, production, and marketing in the United States and Canada.
  • GEI develops, finances, owns, and operates cogeneration and energy infrastructure projects in the United States and abroad, and provides fuel management and consulting services.

Statistics:

  • Total generating capacity of GEI's gas-fired cogeneration facilities: 369 megawatts
  • Number of gas-fired cogeneration facilities owned by GEI: 4
  • Total number of residents served by Brooklyn Union: 4 million
  • Percentage of energy-related investments in the United States and Canada: 67%

Sources:

- "Brooklyn Union Exploring Ways to Maximize Value of Wholly-Owned Cogeneration Subsidiary," Business Wire, August 21, 1994.

- "Brooklyn Union," World Wide Web, http://www.bug.com

- Business Wire: August 21, 1994