PPL acquires power distribution business in UK
US based PPL Corporation has completed its acquisition of the Central Networks electricity distribution business in the UK from E.ON.
The company acquired the distribution business for $5.7bn in cash, inclusive of certain permitted pre-closing adjustments, and $800m of existing public debt to be assumed through consolidation.
To complete the transaction, PPL used acquisition financing under a syndicated bridge facility arranged by Bank of America, Merrill Lynch and Credit Suisse.
The permanent financing plan includes a combination of common stock, equity units and debt.
PPL expects to complete the permanent equity financing in the second quarter of 2011 and the debt financing by the end of the year.
PPL chairman, president and CEO James Miller said this strategic, transformational transaction allows PPL to further expand its regulated electricity operations in a way that enhances shareowner value and is immediately accretive to 2011 earnings and cash flow.
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