BEDMINSTER, N.J.– NUI Corporation (NYSE:NUI – News) announced today that as a result of the negative impact on the company arising from recent credit downgrades and adverse business conditions, its Board of Directors has decided to pursue the sale of the company. After considering a number of strategic alternatives, the Board of Directors established a Special Committee to further assess the company’s choices and concluded that pursuing a sale of the company is in the best interests of the company’s stakeholders.
The company also announced that John Kean, Jr. has stepped down as President and Chief Executive Officer and as a director of the company to pursue other opportunities. A. Mark Abramovic, the company’s Chief Operating Officer and Chief Financial Officer, has been appointed President of the company. Abramovic stated, “The company has benefited from John’s leadership and innovation. We thank him for his years of dedicated service to the company and wish him well in his future endeavors.”
The company also announced that NUI Utilities, Inc. has entered into a letter of intent with a lender to provide it with an additional $50 million unsecured credit facility to fund its short-term needs. NUI is pursuing other alternatives to provide NUI Utilities, Inc. with sufficient credit capacity to continue to satisfy its short-term needs in the event the $50 million facility is not obtained.
NUI also revised its earnings guidance for the fiscal year ending September 30, 2003 to $0.95 to $1.05 per share from $1.10 to $1.25 per share.
“I look forward to working to find the best strategic partner for NUI while ensuring that the interests of our shareholders, employees, customers and other stakeholders remain paramount,” Abramovic said.
Berenson & Company is serving as a financial advisor to the company.