American International Group, Inc. (AIG) and Tenaska, Inc. (Tenaska) today reported that Tenaska will repurchase the interest in Tenaska Marketing Ventures, Tenaska Gas Storage and Tenaska Marketing Canada (collectively TMV) currently owned by affiliates of AIG.
Since April 1, 2007, 50 percent of TMV’s holding companies have been owned by affiliates of Tenaska and the other 50 percent by affiliates of AIG Financial Products Corp. (AIG-FP). Tenaska serves as manager of TMV and Tenaska personnel operate the business.
Tenaska said it proposed to AIG that Tenaska reacquire AIG’s interest in TMV after AIG announced that it was winding down the AIG-FP division as part of AIG’s restructuring of certain of its assets.
Before AIG acquired its interest in TMV in April 2007, Tenaska was sole owner of TMV for many years.
Founded in 1991, TMV is regarded as one of the top 10 natural gas marketers in North America, and provides natural gas commodity, volume management, hedging and asset management products and services.
After completion of this repurchase, Tenaska’s employee owners will again own 100 percent of TMV, which was formed in 1991.
AIG and Tenaska anticipate closing on or about January 2, 2009, subject to the timing of certain regulatory approvals.
The terms of the transaction were not disclosed.
Paula Reynolds, AIG vice chairman and chief restructuring officer, said AIG’s decision to sell its interest in TMV is consistent with its restructuring. “AIG has benefited from its investment in TMV. That investment, however, does not fit with our strategic insurance focus and the businesses in which we intend to remain as we restructure,” said Reynolds.
“Tenaska is a strong and viable company and TMV’s business model is sound despite the current conditions in U.S. financial markets,” said TMV President Fred Hunzeker. He said Tenaska is “well positioned” to repurchase AIG’s interest and assume full ownership of TMV.
Source: American International Group, Inc.
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