Southern Co., AGL Resources complete merger

Southern Company and AGL Resources logos

Southern Co. and AGL Resources completed their merger, bringing together a diversified electric utility and a natural gas business.

"This merger brings together two utilities recognized for outstanding reliability, world-class customer service and a commitment to inventing America's energy future," said Southern Co. Chairman, President and CEO Thomas A. Fanning. "The strategic combination of industry leaders with similar business models and values enhances our ability to serve customers and communities as we together deliver tomorrow's energy solutions."

AGL Resources is the parent company of Atlanta Gas Light, a regulated utility providing natural gas distribution services to about 1,578,000 customers in Georgia.

AGL Resources is now a unit of Southern Co., which now has 11 electric and natural gas utilities with operations across the U.S.

"Southern Co. is now positioned to deliver even greater customer and shareholder value by playing offense in developing the infrastructure necessary to meet America's growing demand for natural gas," said Fanning.

Southern Co. is now the second-largest utility company in the U.S. in terms of customer base with:

·      Eleven regulated electric and natural gas distribution companies providing service to about 9 million customers with a projected regulated rate base of about $50 billion;

·      Operations of nearly 200,000 miles of electric transmission and distribution lines and more than 80,000 miles of natural gas pipelines; and

·      Generating capacity of about 44,000 MW.

The combined company serves utility customers in nine states—Alabama, Florida, Georgia, Illinois, Maryland, Mississippi, New Jersey, Tennessee and Virginia—and has wholesale electricity generation and natural gas services, retail energy services and natural gas storage operations across the U.S.

"AGL Resources is delighted to be a part of the Southern Co. family," said AGL Resources President and CEO Andrew W. Evans. "Together, we will make our employees, our customers, our investors and our neighbors proud to be connected with us. Our collective determination to support and improve the communities where we do business will only be enhanced as we move forward together as one company. Clearly, this merger is a logical fit for both companies."

Under the terms of the agreement, on July 1, each share of AGL Resources common stock was canceled and converted into the right to receive $66.00 in cash, for a total purchase price of about $8 billion. AGL Resources common stock will cease trading on the New York Stock Exchange immediately prior to market open on July 1.

As is the case with Southern Co.'s other operating subsidiaries, AGL Resources will continue to maintain its own management team, board of directors and corporate headquarters, located in Atlanta. Customers will continue to be served by their current gas and electric utility companies.

Citigroup Global Markets Inc. served as the exclusive financial advisor and Jones Day, Gibson Dunn & Crutcher LLP and Troutman Sanders LLP served as legal counsel to Southern Co.. Goldman, Sachs & Co. served as the exclusive financial advisor and Cravath, Swaine & Moore LLP served as legal counsel to AGL Resources.

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