The city has narrowed the field of bidders to buy Philadelphia
Gas Works after it received more than 30 expressions of interest from
"qualified parties," Mayor Nutter's office announced Tuesday.
The city did not specify the number of parties that
submitted "indicative" nonbinding bids by a Nov. 1 deadline, nor the
number of prospects who were invited for a second round of bidding that will
continue through January.
"The indicative bids we received reinforce our belief
that a sale of PGW will benefit Philadelphia taxpayers and PGW customers,"
Nutter said in a statement.
The remaining bidders will now receive detailed financial
information about the 176-year-old company, the nation's largest municipal gas
utility.
Final bids are due in January, after which the city will
negotiate sales terms with one bidder. The sale is being managed by JPMorgan
and Loop Capital Markets.
If an agreement is reached, the sale must be approved by
City Council and approved by the Pennsylvania Public Utility Commission.
Nutter has campaigned to privatize the utility, which was
restored to financial health in the last decade under new management. Sale
opponents believe the city and ratepayers will be better served by continued
municipal ownership.
The city's financial adviser, Lazard Frères & Co.,
recently calculated that PGW could command a price ranging from $1.45 billion
to $1.9 billion, resulting in net proceeds to the city between $422 million and
$872 million. Nutter has proposed using the money to shore up the city's
underfunded pension program.
Source: Philly.com
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