INDIANA ENERGY, INC.
___________________________________________________________________________
NEWS RELEASE CONTACT: INVESTOR RELATIONS
Jeffery W. Whiteside
Assistant Treasurer,
Director of Investor Relations
and Corporate Communications
1630 North Meridian Street
Indianapolis, Indiana 46202-1496
Direct Dial: (317) 321-0588
Facsimile: (317) 921-2767
[email protected]
November 18, 1999
FOR IMMEDIATE RELEASE
INDIANA ENERGY, INC. CALLS SPECIAL SHAREHOLDERS' MEETING TO APPROVE MERGER
WITH SIGCORP, INC. TO FORM VECTREN CORPORATION
INDIANAPOLIS--Indiana Energy, Inc. (NYSE: IEI) today called a Special Meeting
of Common Shareholders to be held on December 17, 1999, at 9:00 a.m. (Eastern
Standard Time) at its corporate headquarters to consider the previously
announced merger with SIGCORP, Inc.
Shareholders of record as of the close of business on October 25, 1999
will be entitled to vote in person or by proxy at the Special Meeting and
will receive notice of the meeting in mid-November 1999. Shareholders
representing a majority of Indiana Energy's common stock outstanding must
approve the merger.
Under the merger agreement, Indiana Energy shareholders will receive one
share of Vectren's common stock for each share of Indiana Energy stock.
SIGCORP shareholders will receive 1.333 shares of Vectren's common stock for
each share of SIGCORP stock.
The boards of directors of both companies have approved the transaction.
Vectren will be headquartered in Evansville, Indiana and is expected to be
listed on the New York Stock Exchange as VVC.
The merger combines two Indiana companies with strong balance sheets, low-
cost operations, growing service areas, diversified product portfolios and
track records of delivering superior shareholder value. Through its utility
subsidiaries, Vectren will offer gas and/or electricity to more than 650,000
customers in adjoining service areas that cover nearly two-thirds of Indiana.
Vectren's non-regulated subsidiaries will offer energy-related products and
services, including: energy marketing; performance contracting and coal
mining; fiber-optic based telecommunications services; locating, trenching
and meter reading services; and materials management to customers throughout
the surrounding region.
(more)
Following the merger, Niel Ellerbrook with Indiana Energy will be
Vectren's chairman and chief executive officer and Andrew Goebel with SIGCORP
will be Vectren's president and chief operating officer. Indiana Energy's
present chairman, L.A. Ferger, and SIGCORP'S present chairman and CEO, Ronald
G. Reherman, both will retire upon completion of the merger, but serve on the
board of directors of the new company. In addition to Messrs. Ferger,
Ellerbrook, Reherman and Goebel, Indiana Energy and SIGCORP each will
designate six directors to serve on the Vectren board.
Vectren's board of directors will set the company's dividend policy.
However, Indiana Energy and SIGCORP anticipate that the dividend, on an
equivalent share basis, of Vectren's stock would be set at or above the
current dividend levels at both companies.
Indiana Energy, Inc. is the holding company of Indiana Gas Company,
Inc., IEI Services, LLC and IEI Investments, Inc. Indiana Gas provides
natural gas distribution to over 500,000 customers in central Indiana.
Information about Indiana Energy, Inc. is located on the World Wide Web at
http://indiana-energy.com.
SIGCORP, Inc. is an investor-owned energy and telecommunications company
that provides electric and gas service to Southwest Indiana and energy-
related and telecommunications products and services to customers throughout
the greater Midwest and elsewhere. SIGCORP companies operate in four business
segments: Utility Group, Energy Services Group, Telecommunications Group and
Complimentary Ventures Group. Information about SIGCORP, Inc. is located on
the World Wide Web at http://sigcorpinc.com.
This press release contains certain statements about future business
operations, financial performance and other issues which are forward looking.
Actual results could differ materially from those that have been projected.
Additional detailed information concerning a number of factors that could
cause actual results to differ materially from the information that has been
provided will be readily available in the Form S-4 Registration Statement
filed by Vectren Corporation with the SEC.
###
The parent company of Indiana Gas Company, Inc. and IEI Investments, Inc.
