Abstract
Dow Chemical, continuing its efforts to focus on its core chemical businesses, has agreed to sell its Destec Energy subsidiary to NGC Corp., a Houston-based natural gas seller. NGC will pay a total of about $1.27 billion in cash for Destec, also based in Houston. Dow drew on its own in-house power-generating expertise to create Destec in 1989. In a public offering in 1991, it sold about 28% of stock in the independent power company, which has interests in 24 power projects worldwide. Dow currently holds a little more than 80% of Destec's stock and says it will use the majority of proceeds from the sale to repurchase its own stock. The offering price of $21.65 per share was an 11% premium over Destec's closing stock price on Friday, Feb. 14. Dow's stock has barely budged since the Feb. 18 announcement of the sale. Destec began seeking a buyer last October. Still, Dow is getting ...
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