Spokane, WA, April 18, 2007 — Avista Energy Inc., a subsidiary of Avista Corp., has signed a definitive agreement to sell substantially all of its contracts and ongoing operations to Coral Energy Holding L.P. and certain of its subsidiaries (Coral Energy), a subsidiary of Shell.
The transaction is expected to close by late second quarter or early third quarter 2007, following the completion of certain contractual requirements, the receipt of necessary regulatory approvals and the satisfaction of other closing conditions.
The agreement also includes the sale of the operating assets of Avista Energy Canada Ltd., which will be acquired by Coral Energy Canada Inc., a subsidiary of Coral Energy.
Avista Energy will receive cash for the assets acquired by Coral at approximately the book value of the assets at closing. In addition, Avista Energy will liquidate other assets not sold or transferred to Coral, including receivables, restricted cash and deposits with counterparties. Over time the majority of the proceeds from these transactions are expected to be reinvested in Avista’s utility business.
Plans call for Avista Energy offices in Spokane, Wash.; Great Falls, Mont.; and Vancouver, British Columbia, to remain in their current locations, with most of the employees being offered employment by Coral.
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