SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 or 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report: March 23, 1999
SEMCO Energy, Inc.
(Exact name of registrant as specified in its charter)
Michigan 0-8503 38-2144267
(State or other (Commission (I.R.S. Employer
jurisdiction of File Number) Identification No.)
incorporation)
405 Water Street, Port Huron, Michigan 48060
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 810-987-2200
<PAGE>
Item 5. Other Events.
On March 15, 1999, the Company reached agreement for the sale of its
natural gas marketing subsidiary, SEMCO Energy Services, Inc., to CoEnergy
Trading Company, a subsidiary of MCN Energy Group, Inc. See exhibit hereto.
Item 7.(c) Exhibits.
99 Press Release issued March 22, 1999.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
SEMCO Energy, Inc.
(Registrant)
Dated: March 23, 1999 By: /s/William L. Johnson
William L. Johnson
Chairman, President and C.E.O.
<PAGE>
EXHIBIT INDEX
Form 8-K
March 23, 1999
Filed
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Exhibit By
No. Description Herewith Reference
- -------- ----------- -------- ---------
99 Press Release dated March 22, 1999. x
Exhibit 99
FOR IMMEDIATE RELEASE
Media Contact: Francis R. Lieder, Jr.
Telephone: 810-987-2200 Ext. 4186
FAX: 810-989-4098
Analysts Contact: Sebastian Coppola
Telephone: 810-987-2200 Ext. 4101
FAX: 810-989-4098
Contact at MCN: Stewart Lawrence
Telephone: 313-256-6289
SEMCO ENERGY, Inc. REACHES AGREEMENT TO SELL GAS MARKETING
DIVISION TO MCN ENERGY GROUP INC.
PORT HURON, MI - MARCH 22 - SEMCO ENERGY, Inc. (NASDAQ/NM:
SMGS) today announced that it has reached an agreement to sell
its natural gas marketing subsidiary, SEMCO ENERGY SERVICES, to
CoEnergy Trading Company, a subsidiary of MCN Energy Group Inc.
SEMCO ENERGY had announced in February its intention to sell
this business.
In announcing the sale, William L. Johnson, Chairman
President and Chief Executive Officer of SEMCO ENERGY, Inc.,
said: "Energy marketing is a very competitive business with risks
that do not fit well with our new business strategy.
"Our focus now is to become one of the largest providers of
underground engineering and construction services in North
America. The sale of SEMCO ENERGY SERVICES will allow us to
redirect our efforts toward continuing the growth of our other
businesses."
In 1998, SEMCO ENERGY SERVICES reported $398 million in
revenues on sales volume of 166 billion cubic feet (Bcf) to both
retail and wholesale customers. SEMCO ENERGY, Inc. expects to
record a gain on the sale.
Other specific terms of the agreement were not disclosed.
Glen D. Kinder, President and Chief Executive Officer of
CoEnergy Trading Company, said the purchase of SEMCO ENERGY
SERVICES includes retail sales of natural gas in 1998 totaling 13
Bcf to approximately 140 industrial and commercial customers and
more than 4,000 retail accounts throughout Michigan, building
upon CoEnergy marketing operations that delivered nearly 500 Bcf
of gas in 1998.
"As a successful energy marketer focused in the Great Lakes,
Mid-Atlantic and New England regions of the United States and in
eastern Canada, this acquisition fits very well with our existing
marketing, transportation and storage assets," he said.
The closing of the sale is conditioned on the approval of
the SEMCO ENERGY Board of Directors. It also must be approved by
the Federal Trade Commission and the U.S. Justice Department
under the Hart-Scott-Rodino Anti-Trust Improvements Act of 1987.
Closing is anticipated by March 31.
SEMCO ENERGY, Inc. has two other subsidiaries. SEMCO ENERGY
GAS COMPANY is a local natural gas distribution company with
approximately 250,000 residential, commercial and industrial
customers in Michigan's Upper and Lower Peninsulas. SEMCO ENERGY
VENTURES operates businesses involved in pipeline engineering and
quality assurance services, construction services, propane
distribution, intrastate pipelines and natural gas storage
businesses in Kansas, Louisiana, Michigan, Missouri, New Jersey,
Tennessee, Tex-as and Wisconsin.
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