Friday, March 04, 2011

PPL, E.On UK electricity networks for $6 billion to acquire

Friday, March 04, 2011
PHILADELPHIA (AP) - Drag to accelerate your growth in the current operations, PPL Corp. said Tuesday that it will buy the u.k.-based central networks of electrical networks distribution business Germany E.On AG in a deal worth $ 6.4 billion.Allentown-based PPL said it would be $5.6 billion or ? 3.5 billion, payable in cash and assume $800 million debt. "PPL and E.On expect to close the deal early next month."This transaction significantly improves PPL business mix and our business risk profile ", James H. Miller, PPL Chairman, President and Chief Executive said in a statement. PPL said that it expected that the deal, if completed, could add up to 15 cents per share to its earnings potential this year." This would its 2011 earnings forecast to between $2.50 to $2.75 a share of the current direction of $2.40 to $2.60 a share lift. Analysts surveyed by FactSet forecast that the company this year will earn a share of $2.52.Last month, PPL reported that more than your profit on $ 355 million, or 73 cents per share doubled in the three months ended Dec. 31, compared with $ 153 million, or 40 cents per share a year earlier. The increase of profits is due electrical sales and some unique tax gains.5 Million customers in the Midlands of England Central networks is used by about 83,000 miles of lines, including Birmingham and Nottingham.PPL already Western power distribution, which allows the regulated distribution by 52,000 miles of lines to 2.6 million customers in South West England and South Wales has cities, including the cities of Bristol and Cardiff.With Central networks, PPL, said it will own and operate, what does it tell the largest network of the delivery of electricity companies in the UK on regulated asset value, a combined 7.8 billion dollars or ? 4.9 billion. "Opportunities as compelling as this come together not very often,", said Miller.Im December completed PPL the acquisition of two Kentucky utilities - Louisville gas & Electric Co. and Kentucky utilities co. - of E.On for 7.59 billion Dollar.Mit of the latest acquisition of PPL granted utility service to more than 10 million customers in the United Kingdom, Pennsylvania, Kentucky, Virginia and Tennessee and has, or some controls 19,000 megawatts of generating capacity.Shares in the PPL slipped 5 cents to $24.85 in trade expanded Tuesday. 53 Cents, or 2 percent to $24.90.---Online: ended the regular session

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