Pacific Enterprises International signs memo of understanding to possibly acquire interests in two Argentine holding companies

Business Wire, Jan 2, 1996

LOS ANGELES--(BUSINESS WIRE)--Jan. 2, 1996--Pacific Enterprises International (PEI), a wholly owned subsidiary of Pacific Enterprises (NYSE:PET), announced that it has entered into a non-binding memorandum of understanding for discussions and due diligence that could lead to PEI's acquisition of a 12.5 percent interest in each of two Argentine natural gas utility holding companies.

The holding companies, Sodigas Pampeana S.A. and Sodigas Sur S.A., each own a controlling interest in the natural gas distribution utilities operating in the Argentine regions of Pampeana and Sur, respectively. The holding companies are 94 percent owned by Camuzzi Gazometri S.p.A. (Camuzzi), Loma Negra C.I.A.S.A. (Loma Negra) and Citicorp Equity Investments S.A. (CEI).

Collectively, the natural gas distribution utilities serve about 1 million customers with 625 million cubic feet of gas per day. While PEI would have a 12.5 percent interest in the holding companies, it also would expect to have a role in managing the utility operations. The utility companies were privatized by the Argentine government in 1992.

According to the memorandum of understanding, PEI would purchase 50 percent of the shares currently owned by CEI in the two holding companies, giving PEI its 12.5 percent interest. Camuzzi and Loma Negra also would be expected to be parties to any agreement.

The acquisition price is anticipated to be in the approximate range of $47 million and $52 (U.S.), subject to certain conditions.

PEI expects a final determination on the sale decision and purchase price by all the parties to be made by early March 1996.

PEI is a unit of Pacific Enterprises, a $5 billion (assets) energy service company. Pacific Enterprises also is the parent firm of Southern California Gas Co., the largest natural gas distribution utility in the United States.

PEI is working with Energy Assets Management, a San Francisco- based company recently formed by Cordell W. Hull and Eric R. Zausner, to develop international energy-related projects and for assistance in the Argentine transaction.

CONTACT: Pacific Enterprises, Los Angeles

Mike Mizrahi or Tom Sanger, 213/244-3030