Parent of Retail Supplier To Acquire Columbia Pipeline Group

Columbia Pipeline Group, Inc. announced that it has entered into a definitive agreement to be acquired by TransCanada Corporation for $25.50 per share in cash.

Including the assumption of CPG debt, the total enterprise value of the transaction is approximately $13 billion. The agreement, which has been unanimously approved by CPG's Board of Directors, represents a premium of approximately 32% to the volume weighted average price over the last 30 days.

TransCanada Corporation is the ultimate parent of retail supplier TransCanada Power Marketing, and is engaged in various other power generation and energy infrastructure businesses.

The transaction is expected to close in the second half of 2016, subject to customary closing conditions, including receipt of regulatory approvals. The transaction requires the affirmative vote of holders of a majority of CPG's outstanding shares.

TransCanada has senior unsecured bridge credit facilities in place for up to US $10.3 billion with a syndicate of lenders.

Following completion of the transaction, TransCanada will own the general partner of Columbia Pipeline Partners LP, all of CPPL's incentive distribution rights and all of CPPL's subordinated units, which represent a 46.5% limited partnership interest in CPPL. Upon closing of the transaction, CPPL will remain a publicly traded partnership.

Columbia Pipeline Group, Inc. operates approximately 15,000 miles of interstate pipeline, gathering and processing assets extending from New York to the Gulf of Mexico, including an extensive footprint in the Marcellus and Utica shale production areas. Columbia Pipeline Group, Inc. also operates one of the nation's largest underground natural gas storage systems.

TransCanada operates a network of natural gas pipelines that extends more than 67,000 kilometers (42,000 miles), tapping into virtually all major gas supply basins in North America. TransCanada is one of the continent's largest providers of gas storage and related services with 368 billion cubic feet of storage capacity. TransCanada owns or has interests in over 13,100 megawatts of power generation in Canada and the United States.