Exhibit 99.2
SEMCOENERGY NEWS
405 Water Street, Port Huron, MI 48060 RELEASE
FOR IMMEDIATE RELEASE
Contact:
MEDIA: FRANCIS R. LIEDER, JR.
810.987.2200 ext. 4186
FAX: 810.989.4098
[email protected]
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ANALYSTS: SEB COPPOLA
Sr. Vice Pres., CFO
810.989.4101
FAX: 810.989.4099
SEMCO Energy, Inc. Explores Strategic Alternatives
to Increase Shareholder Value
Port Huron, Mich., July 25, 2000 -- The management of SEMCO Energy, Inc.
(NYSE: SEN) a diversified energy services and infrastructure holding company,
today announced it is exploring strategic alternatives in an effort to enhance
and maximize shareholder value. These alternatives include evaluating possible
transactions, such as a merger with a strategic partner.
The Company said it has retained the investment banking firm Banc of
America Securities LLC as financial advisor to assist in the review of such
alternatives.
Commenting on the announcement, Chairman, President and CEO, William L.
Johnson said, "SEMCO has grown normalized earnings per share more than 240% in
the last four years and has made significant progress in implementing its growth
strategy. This success has not been reflected in the Company's stock price. We
are also concerned that SEMCO's modest size in the quickly consolidating utility
industry may be impeding our ability to fully execute our long-term growth
strategy."
According to Johnson, the SEMCO Energy Board of Directors has requested
that management undertake a review of strategic alternatives.
"SEMCO remains committed to increasing shareholder value while providing high
quality service to the customers and communities we serve," said Johnson.
SEMCO ENERGY, Inc. is a diversified energy and infrastructure company that
distributes natural gas to more than 350,000 customers combined in Michigan and
Alaska. The Company also owns and operates businesses involved in gas
engineering and quality assurance services, pipeline construction services,
propane distribution, intrastate pipelines and natural gas storage in various
regions in the United States. In addition, the Company provides information
technology and outsourcing services, specializing in the mid-range computer
market.
THE FOLLOWING IS A "SAFE-HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES
LITIGATION REFORM ACT OF 1995: THIS RELEASE CONTAINS FORWARD-LOOKING STATEMENTS
THAT INVOLVE RISKS AND UNCERTAINTIES INCLUDING, BUT NOT LIMITED TO, STATEMENTS
INVOLVING REVENUES AND EXPENSES, OPERATING INCOME, RETURNS ON INVESTED ASSETS,
REGULATORY APPROVAL PROCESSES, SUCCESS IN OBTAINING NEW BUSINESS, SUCCESS IN
INTEGRATING ACQUIRED BUSINESSES, AND OTHER RISKS DETAILED FROM TIME TO TIME IN
THE COMPANY'S SECURITIES AND EXCHANGE COMMISSION FILINGS.
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