NiSource Inc.’s (NYSE: NI) board of directors has approved the separation of Columbia Pipeline Group (CPG) from NiSource through a distribution of CPG common stock to NiSource shareholders. In connection with the board's approval, NiSource confirmed the distribution ratio, record date, and distribution date for the separation.
As a result, the following will occur:
- The distribution of CPG common stock is expected to be made after the close of trading on the New York Stock Exchange (NYSE) on July 1 to NiSource shareholders of record as of 5 p.m. Central Time on June 19.
- On the distribution date, NiSource shareholders will receive one share of CPG common stock for every one share of NiSource common stock held as of the record date.
- Following the distribution, CPG will be an independent, publicly traded company (NYSE: CPGX), and NiSource will retain no ownership interest in CPG.
After the separation, Houston-based CPG will include Columbia Gas Transmission, Columbia Gulf Transmission, Columbia Midstream Group, its ownership in Columbia Pipeline Partners (NYSE: CPPL), and other natural gas pipeline, storage, and midstream holdings currently owned by NiSource. In total CPG operates more than 15,000 miles of natural gas transmission pipelines, nearly 300 billion cubic feet of underground natural gas storage working capacity, and a growing portfolio of midstream and related facilities.
Upon completion of the separation, NiSource President and CEO Robert C. Skaggs Jr. will become chairman and CEO of CPG. Joseph Hamrock, currently executive vice president and group CEO of NiSource's Gas Distribution business unit, will be named NiSource president and CEO and appointed to its board.
Expected to continue serving on the NiSource board following the separation are current independent NiSource board members Richard L. Thompson (who is expected to continue serving as board chairman), Richard A. Abdoo, Michael E. Jesanis, Aristides S. Candris and Carolyn Y. Woo.
Members of NiSource's current board expected to join the CPG board upon separation are independent board members Sigmund L. Cornelius, Marty R. Kittrell, W. Lee Nutter, Deborah S. Parker, and Teresa A. Taylor. None of these expected CPG directors are expected to continue to serve on the NiSource Board following the separation.
Shares of NiSource common stock will continue to trade "regular way" on the New York Stock Exchange (NYSE) under the symbol "NI" through and after the distribution date. Any holder of NiSource common stock who sells NiSource shares "regular way" after the record date or on or before the distribution date will also be selling their right to receive shares of CPG common stock in the distribution. It is anticipated that NiSource shares will also trade "ex-distribution" (without the right to receive shares of CPG common stock in the distribution) beginning on or about June 17, and continuing through the distribution date, under the symbol "NI WI."