GREEN BAY, Wis., Feb. 8 /PRNewswire-FirstCall/ — In preparation for the potential closing of the merger of WPS Resources Corporation (NYSE:WPS) with Peoples Energy Corporation (NYSE:PGL) prior to WPS Resources’ next common stock dividend record date, and in accordance with the merger agreement between WPS Resources and Peoples Energy, the Board of Directors of WPS Resources today declared two special pro rata dividends.
The board declared a pro rata dividend of $0.00638889 per share per day that will accrue from December 1, 2006, being the date immediately following WPS Resources’ prior dividend record date, until and including the day prior to the effective date of the merger. This pro rata dividend, which is the daily equivalent of the current quarterly dividend rate of $0.575 per share, will be paid to WPS Resources’ shareholders of record at the close of business on the day immediately prior to the effective date of the merger. The effective date of the merger is not currently known, but is expected to close shortly. The dividend will be paid as soon as practical following the completion of the merger.
The board also declared a pro rata dividend of $0.00733333 (the daily equivalent of $0.66 per quarter) that will accrue from and including the effective date of the merger until and including February 28, 2007. This pro rata dividend, which is the daily equivalent of $0.66 per share, will be paid on March 20, 2007, to WPS Resources shareholders of record on February 28, 2007. The $0.00733333 rate for this pro rata dividend is pursuant to the merger agreement which called for WPS Resources’ shareholders to receive a dividend of $0.66 per quarter upon completion of the merger, an increase of more than 14% over the current quarterly dividend of $0.575.
These pro rata dividend declarations are contingent upon the completion of the merger prior to March 1, 2007. In the event that the merger has not closed by that date, WPS Resources shareholders of record on February 28, 2007, will receive the regular quarterly dividend of $0.575 per share, payable on March 20, 2007. This regular quarterly dividend was also approved by the board contingent upon the merger not closing by March 1, 2007. If the regular quarterly dividend is paid, a new pro rata dividend will be declared, as necessary, to ensure that shareholders receive their dividend at the current rate until the merger is completed.
As previously announced, it is intended that the quarterly dividend of the combined company (which will be called Integrys Energy Group, Inc.) will be $0.66 per share. The Integrys dividend policy will be evaluated over time as future business needs dictate.
About WPS Resources Corporation
WPS Resources Corporation (NYSE:WPS) is a holding company headquartered in Green Bay, Wisconsin. Its largest subsidiary is Wisconsin Public Service Corporation, a regulated electric and natural gas utility that generates and distributes energy in northeastern Wisconsin and an adjacent portion of Upper Michigan. Other major subsidiaries include Minnesota Energy Resources Corporation, a regulated natural gas utility operating in Minnesota; Michigan Gas Utilities Corporation, a regulated natural gas utility operating in lower Michigan; Upper Peninsula Power Company, a regulated electric utility operating in the northern half of Michigan’s Upper Peninsula; and a nonregulated energy marketing subsidiary, WPS Energy Services, Inc. For more information, visit the company’s Web site at http://www.wpsr.com/ .
