![]() " will refocus our business mix squarely on strong, rate-regulated U.S. Net proceeds will also be used to further PPL's balance sheet and enhance opportunities for strategic growth, including potential investments of incremental capital at its utilities or in renewables and in repurchasing shares. for $3.8 billion, plus the assumption of approximately $1.5 billion of debt. The transaction, valued in total at £14.4 billion, is expected to result in net cash proceeds of approximately $10.2 billion for PPL, reflecting taxes and fees and based on a foreign-currency exchange rate of $1.35 to the pound.Ī portion of the proceeds will be used to finance PPL's acquisition of National Grid's Rhode Island utility Narragansett Electric Co. electricity distribution business Western Power Distribution PLC to British utility National Grid PLC for £7.8 billion in cash, plus the assumption of approximately £6.6 billion of debt. ![]() The electric services company said that the WPD transaction is anticipated to be closed within four months, while the NECO deal is expected to be completed within a year.īoth the deals are subject to customary approvals in the US and UK, and also National Grid’s shareholders’ approval for the WPD transaction.PPL Corp. utilities strengthen our credit metrics enhance long-term earnings growth and predictability and provide us with greater financial flexibility to invest in sustainable energy solutions for those we serve.” “They will refocus our business mix squarely on strong, rate-regulated U.S. PPL president and CEO Vincent Sorgi said: “The strategic transactions we are announcing today immediately unlock value for shareowners and achieve the objectives we set out in launching the process to sell our U.K. PPL said that the deals will help it become a high-growth, purely US-focused energy firm with a strong balance sheet. ![]() “We have received a premium valuation for our Rhode Island business and I am confident that we will also deliver attractive shareholder value from the NGG Sale in due course.” “WPD has a high quality, fast growing asset base and an excellent track record of customer satisfaction, operational performance and financial returns. National Grid chief executive John Pettigrew said: “The acquisition of WPD is a one-off opportunity to acquire a significant scale position in UK electricity distribution. Besides, the company said that its long-term growth outlook will be strengthened by boosting its position in electricity distribution through the addition of WPD.įollowing the divestiture of NECO and stake sale in NGG, National Grid will have nearly 40% of its assets in the US. The electricity and gas utility company said that the deals pivot its UK portfolio strategically towards electricity. National Grid Gas owns the national gas transmission system (NGG) in the UK. NECO’s electricity transmission and distribution and gas distribution businesses serve nearly 780,000 customers in Rhode Island.Īpart from that, National Grid said that it will launch the sale of a majority stake in National Grid Gas in the second half of 2021 and close the deal nearly a year later. ![]() PPL will also assume nearly $1.5bn (£1.08bn) of NECO’s debt. In a separate agreement, National Grid has agreed to divest its US-based utility business Narragansett Electric (NECO) to PPL Energy, another subsidiary of PPL, for $3.8bn (£2.7bn). ![]()
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