AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON
APRIL 18, 1997
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
-------------
Schedule 13E-3
Transaction Statement
(Pursuant to Section 13(e) of the Securities Exchange Act of 1934)
PG ENERGY INC.
(Name of Issuer and Person Filing Statement)
-------------
4.10% CUMULATIVE PREFERRED STOCK, PAR VALUE $100.00 PER SHARE
(Title of Class of Securities)
-------------
708747209
(CUSIP Number of Class of Securities)
-------------
THOMAS J. WARD
SECRETARY
PG ENERGY INC.
ONE PEI CENTER
WILKES-BARRE, PENNSYLVANIA 18711
(717) 829-8843
(Name, Address and Telephone Number of Person Authorized to Receive Notices
and Communications on Behalf of the Person Filing the Statement)
COPY TO:
KENNETH A. LEFKOWITZ
HUGHES HUBBARD & REED LLP
ONE BATTERY PARK PLAZA
NEW YORK, NEW YORK 10004-1482
(212) 837-6000
April 18, 1997
(Date Tender Offer First Published, Sent or Given to Security Holders)
This statement is filed in connection with (check the appropriate box):
a. [ ] The filing of solicitation materials or an information
statement subject to Regulation 14A, Regulation 14C or Rule
13e-3(c) under the Securities Exchange Act of 1934.
b. [ ] The filing of a registration statement under the Securities
Act of 1933.
c. [X] A tender offer.
d. [ ] None of the above.
Check the following box if the soliciting materials or information statement
referred to in checking box (a) are preliminary copies: [ ]
Calculation of Filing Fee
- --------------------------------------------------------------------------------
Transaction Valuation* Amount of Filing Fee
- --------------------------------------------------------------------------------
$5,519,710 $1,104
- --------------------------------------------------------------------------------
* Determined pursuant to Rule 0-11(b)(1). Assumes the purchase of 78,853
shares at $70.00 per share. Calculation based on the transaction
valuation multiplied by one-fiftieth of one percent.
[X] Check box if any part of the fee is offset as provided by Rule
0-11(a)(2) and identify the filing with which the offsetting fee was
previously paid. Identify the previous filing by registration
statement number, or the Form or Schedule and the date of its filing.
Amount Previously Paid: $1,104
Form or Registration No.: 13E-4
Filing Party: PG Energy Inc.
Date Filed: April 18, 1997
- -----------------------------------------------------------
- -----------------------------------------------------------
This Rule 13e-3 Transaction Statement (the "Statement") relates to the
offer by PG Energy Inc., a Pennsylvania corporation formerly known as
Pennsylvania Gas and Water Company (the "Company"), to purchase any and all of
its outstanding shares of 4.10% Cumulative Preferred Stock, par value $100.00
per share, voluntary liquidation preference $105.50 per share, involuntary
liquidation preference $100.00 per share (the "Shares"), at $70.00 per Share,
net to the seller in cash, upon the terms and subject to the conditions set
forth in the Offer to Purchase, dated April 18, 1997, and in the related Letter
of Transmittal, copies of which are attached hereto as Exhibits (d)(1) and
(d)(2), respectively.
The cross reference sheet below is being supplied pursuant to General
Instruction F to Schedule 13E-3 and shows the location in the Issuer Tender
Offer Statement on Schedule 13E-4 (the "Schedule 13E-4") filed by the Company
with the Securities and Exchange Commission on the date hereof of the
information required to be included in response to the items of this Statement.
The information set forth in the Schedule 13E-4, which is attached hereto as
Exhibit (g)(2), including all exhibits thereto, is expressly incorporated by
reference and responses to each item herein are qualified in their entirety by
the provisions of the Schedule 13E-4.
CROSS-REFERENCE SHEET
ITEM IN LOCATION IN
SCHEDULE 13E-3 SCHEDULE 13E-4
-------------- --------------
Item 1(a).................................................................... Item 1(a)
Item 1(b).................................................................... Item 1(b)
Item 1(c).................................................................... Item 1(c)
Item 1(d).................................................................... *
Item 1(e).................................................................... *
Item 1(f).................................................................... *
Item 2(a).................................................................... *
Item 2(b).................................................................... *
Item 2(c).................................................................... *
Item 2(d).................................................................... *
Item 2(e).................................................................... *
Item 2(f).................................................................... *
Item 2(g).................................................................... *
Item 3(a)(1)................................................................. *
Item 3(a)(2)................................................................. *
Item 3(b).................................................................... *
Item 4(a).................................................................... *
Item 4(b).................................................................... *
Item 5(a).................................................................... Item 3(b)
Item 5(b).................................................................... Item 3(c)
Item 5(c).................................................................... Item 3(d)
Item 5(d).................................................................... Item 3(e)
Item 5(e).................................................................... Item 3(f)
Item 5(f).................................................................... Item 3(i)
Item 5(g).................................................................... Item 3(j)
Item 6(a).................................................................... Item 2(a)
Item 6(b).................................................................... *
Item 6(c).................................................................... Item 2(b)
Item 6(d).................................................................... *
Item 7(a).................................................................... Item 3
Item 7(b).................................................................... *
Item 7(c).................................................................... *
Item 7(d).................................................................... *
ITEM IN LOCATION IN
SCHEDULE 13E-3 SCHEDULE 13E-4
-------------- --------------
Item 8(a).................................................................... *
Item 8(b).................................................................... *
Item 8(c).................................................................... *
Item 8(d).................................................................... *
Item 8(e).................................................................... *
Item 8(f).................................................................... *
Item 9(a).................................................................... *
Item 9(b).................................................................... *
Item 9(c).................................................................... *
Item 10(a)................................................................... *
Item 10(b)................................................................... Item 4
Item 11...................................................................... Item 5
Item 12(a)................................................................... *
Item 12(b)................................................................... *
Item 13(a)................................................................... *
Item 13(b)................................................................... *
Item 13(c)................................................................... *
Item 14(a)................................................................... Item 7(a)
Item 14(b)................................................................... Item 7(b)
Item 15(a)................................................................... *
Item 15(b)................................................................... Item 6
Item 16...................................................................... Item 8(e)
Item 17(a)................................................................... Item 9(b)
Item 17(b)................................................................... *
Item 17(c)................................................................... Item 9(c)
Item 17(d)................................................................... Item 9(a)
Item 17(e)................................................................... *
Item 17(f)................................................................... Item 9(f)
- --------------------
* The Item is located in the Schedule 13E-3 only.
ITEM 1. Issuer and Class of Security Subject to the Transaction.
(a) The name of the issuer is PG Energy Inc., a Pennsylvania
corporation formerly known as Pennsylvania Gas and Water Company (the
"Company"), and the address of its principal executive offices is One PEI
Center, Wilkes-Barre, Pennsylvania 18711.
(b) This Schedule relates to the offer by the Company to purchase
any and all of its outstanding shares of 4.10% Cumulative Preferred Stock, par
value $100.00 per share, voluntary liquidation preference $105.50 per share,
involuntary liquidation preference $100.00 per share (the "Shares"), at $70.00
per Share, net to the seller in cash, all upon the terms and subject to the
conditions set forth in the Offer to Purchase, dated April 18, 1997 (the "Offer
to Purchase"), and the related Letter of Transmittal (which together constitute
the "Offer"), copies of which are attached hereto as Exhibits (d)(1) and (d)(2),
respectively. As of April 18, 1997, the Company had issued and outstanding
78,853 Shares. As of April 18, 1997, there were approximately 525 holders of
record of Shares. The information set forth on the cover page, and under
"Introduction" of the Offer to Purchase is incorporated herein by reference.
(c) and (d) The information set forth on the cover page, and under
"Introduction" and "The Offer-Price Range of Shares; Dividends; Trading Volume"
in Section 10 of the Offer to Purchase is incorporated herein by reference.
(e) Not applicable.
(f) The information set forth under "The Offer-Transactions and
Agreements Concerning the Shares and Other Securities of the Company" in Section
13 and on Schedule B, "Purchases of Preferred Stock of the Company by the
Company or its Affiliates Since January 1, 1995" of the Offer to Purchase is
incorporated herein by reference.
ITEM 2. Identity and Background.
The issuer is the party filing this Statement.
(a)-(d) The information set forth under "The Offer-Certain Information
Concerning the Company-Directors and Executive Officers of the Company" in
Section 11 and on Schedule A, "Directors and Executive Officers of the Company"
of the Offer to Purchase is incorporated herein by reference.
(e) and (f) None.
(g) The information set forth under "The Offer-Certain Information
Concerning the Company-Directors and Executive Officers of the Company" in
Section 11 and on Schedule A, "Directors and Executive Officers of the Company"
of the Offer to Purchase is incorporated herein by reference.
ITEM 3. Past Contacts, Transactions or Negotiations.
(a) Not applicable.
(b) None.
ITEM 4. Terms of the Transaction.
(a) The information set forth on the cover page, and under
"Introduction", "Special Factors-Purpose of the Offer; Certain Effects of the
Offer; Plans of the Company After the Offer" in Section 1 and "The Offer" of the
Offer to Purchase is incorporated herein by reference.
(b) Not applicable.
ITEM 5. Plans or Proposals of the Issuer or Affiliate.
(a)-(g) The information set forth under "Special Factors-Purpose of
the Offer; Certain Effects of the Offer; Plans of the Company After the Offer"
in Section 1 of the Offer to Purchase is incorporated herein by reference.
ITEM 6. Source and Amount of Funds or Other Consideration.
(a) The information set forth under "The Offer-Source and Amount
of Funds" in Section 12 of the Offer to Purchase is incorporated herein by
reference.
(b) The information set forth under "The Offer-Fees and Expenses"
in Section 15 of the Offer to Purchase is incorporated herein by reference.
(c) The information set forth under "The Offer-Source and Amount of
Funds" in Section 12 of the Offer to Purchase is incorporated herein by
reference.
(d) Not applicable.
ITEM 7. Purpose(s), Alternatives, Reasons and Effects.
(a) The information set forth under "Special Factors-Purpose of
the Offer; Certain Effects of the Offer; Plans of the Company After the Offer"
in Section 1 of the Offer to Purchase is incorporated herein by reference.
(b) None.
(c) The information set forth under "Special Factors-Purpose of
the Offer; Certain Effects of the Offer; Plans of the Company After the Offer"
in Section 1 of the Offer to Purchase is incorporated herein by reference.
(d) The information set forth under "Special Factors-Purpose of
the Offer; Certain Effects of the Offer; Plans of the Company After the Offer"
in Section 1 and "Special Factors-Certain Federal Income Tax Consequences" in
Section 2 of the Offer to Purchase is incorporated herein by reference.
ITEM 8. Fairness of the Transaction.
(a) and (b) The information set forth under "Special Factors-Fairness
of the Offer; Reports and Opinions" in Section 3 of the Offer to Purchase is
incorporated herein by reference.
(c) The information set forth under "Special Factors-Certain Legal
Matters; Regulatory and Foreign Approvals; No Appraisal Rights" in Section 4 of
the Offer to Purchase is incorporated herein by reference.
(d) The information set forth under "Special Factors-Fairness of
the Offer; Reports and Opinions" in Section 3 of the Offer to Purchase is
incorporated herein by reference.
(e) The information set forth under "Special Factors-Purpose of
the Offer; Certain Effects of the Offer; Plans of the Company After the Offer"
in Section 1 of the Offer to Purchase is incorporated herein by reference.
(f) None.
ITEM 9. Reports, Opinions, Appraisals and Certain Negotiations.
(a) The information set forth under "Special Factors-Fairness of
the Offer; Reports and Opinions" in Section 3 of the Offer to Purchase is
incorporated herein by reference.
(b) Not applicable.
(c) Not applicable.
ITEM 10. Interest in Securities of the Issuer.
(a) and (b) The information set forth under "The Offer-Transactions and
Agreements Concerning the Shares and Other Securities of the Company" in Section
13 of the Offer to Purchase is incorporated herein by reference.
ITEM 11. Contracts, Arrangements or Understandings with Respect to the
Issuer's Securities.
The information set forth under "The Offer-Transactions and Agreements
Concerning the Shares and Other Securities of the Company" in Section 13 of the
Offer to Purchase is incorporated herein by reference
ITEM 12. Present Intention and Recommendation of Certain Persons with
Regard to the Transaction.
(a) and (b) The information set forth on the cover page and under
"Introduction" and "Special Factors-Purpose of the Offer; Certain Effects of the
Offer; Plans of the Company After the Offer" in Section 1 of the Offer to
Purchase is incorporated herein by reference.
ITEM 13. Other Provisions of the Transaction.
(a) The information set forth under "Special Factors-Certain Legal
Matters; Regulatory and Foreign Approvals; No Appraisal Rights" in Section 4 of
the Offer to Purchase is incorporated herein by reference.
(b) Not applicable.
(c) Not applicable.
ITEM 14. Financial Information.
(a) and (b) The information set forth under "The Offer-Certain
Information Concerning the Company-Selected Historical Financial Information" in
Section 11 of the Offer to Purchase is incorporated herein by reference, and the
information set forth on pages 25 through 48 of the Company's Annual Report on
Form 10-K for the year ended December 31, 1996, filed as Exhibit (g)(1) hereto,
is incorporated herein by reference.
ITEM 15. Persons and Assets Employed, Retained or Utilized.
(a) The information set forth under "The Offer-Fees and Expenses"
in Section 15 of the Offer to Purchase is incorporated herein by reference.
(b) The information set forth under "The Offer-Fees and Expenses"
in Section 15 of the Offer to Purchase and in the Letter of Transmittal and
Letter to Brokers, Dealers, Commercial Banks, Trust Companies and Other
Nominees, dated April 18, 1997 is incorporated herein by reference.
ITEM 16. Additional Information.
The information set forth in the Offer to Purchase and the Letter of
Transmittal is incorporated herein by reference.
ITEM 17. Material to Be Filed as Exhibits.
(a)(1) Promissory Note in the principal amount of $15.0 million dated
April 8, 1997, between PG Energy Inc. and Mellon Bank, N.A.
(b) None.
(c) None.
(d)(1) Form of Offer to Purchase, dated April 18, 1997.
(d)(2) Form of Letter of Transmittal with Substitute Form W-9.
(d)(3) Guidelines for Certification of Taxpayer Identification Number
on Substitute Form W-9.
(d)(4) Form of Letter to Stockholders of the Company from Thomas F.
Karam, President and Chief Executive Officer of the Company
and Kenneth L. Pollock, Chairman of the Board of the Company,
dated April 18, 1997.
(d)(5) Form of Notice of Guaranteed Delivery.
(d)(6) Form of Letter to Brokers, Dealers, Commercial Banks, Trust
Companies and Other Nominees, dated April 18, 1997.
(d)(7) Form of Summary Advertisement, dated April 21, 1997.
(d)(8) Form of Press Release issued by the Company, dated April 18,
1997.
(e) Not applicable.
(f) None.
(g)(1) Pages 25 through 48 of the Company's Annual Report on Form
10-K for the Year Ended December 31, 1996.
(g)(2) Issuer Tender Offer Statement on Schedule 13E-4.
SIGNATURE
After due inquiry and to the best of my knowledge and belief, I certify
that the information set forth in this statement is true, complete and correct.
PG Energy Inc
By: /s/ John F. Kell, Jr.
--------------------------------------
Name: John F. Kell, Jr.
Title: Vice President, Financial Services
Dated: April 18, 1997
INDEX TO EXHIBITS
EXHIBIT
NUMBER DESCRIPTION
(a)(1) Promissory Note in the principal amount of $15.0 million dated
April 8, 1997, between PG Energy Inc. and Mellon Bank, N.A.
(b) None.
(c) None.
(d)(1) Form of Offer to Purchase, dated April 18, 1997.
(d)(2) Form of Letter of Transmittal with Substitute Form W-9.
(d)(3) Guidelines for Certification of Taxpayer Identification Number
on Substitute Form W-9.
(d)(4) Form of Letter to Stockholders of the Company from Thomas F.
Karam, President and Chief Executive Officer of the Company and
Kenneth L. Pollock, Chairman of the Board of the Company,
dated April 18, 1997.
(d)(5) Form of Notice of Guaranteed Delivery.
(d)(6) Form of Letter to Brokers, Dealers, Commercial Banks, Trust
Companies and Other Nominees, dated April 18, 1997.
(d)(7) Form of Summary Advertisement, dated April 18, 1997.
(d)(8) Form of Press Release issued by the Company, dated April
18, 1997.
(e) Not applicable.
(f) None.
(g)(1) Pages 25 through 48 of the Company's Annual Report on Form 10-K
for the Year Ended December 31, 1996.
(g)(2) Issuer Tender Offer Statement on Schedule 13E-4.