Great Plains Energy, Inc. (ticker: GXP, exchange: New York Stock Exchange (.N))
News Release -
Aquila Energy Reaches Agreement to Acquire GPU International
KANSAS CITY, Mo.--(BUSINESS WIRE)--Oct. 5, 2000--Aquila Energy, a
wholly owned subsidiary of UtiliCorp United (NYSE:UCU), and GPU, Inc.
(NYSE:GPU) today announced that they have executed a definitive $225
million agreement for Aquila to purchase GPU's wholly owned
subsidiary, GPU International Inc., including its interests in six
independent U.S.-based generating plants and a development generating
GPU's interests in the generating plants represent about 500
megawatts of capacity, and it owns a one-half interest in the
715-megawatt development project. At closing, the corporate employees
currently associated with GPU International will be considered for
transfer to Aquila. The transaction is expect to close by the end of
"These assets are an excellent strategic fit for us," said Robert
K. Green, chairman of Aquila Energy and president and chief operating
officer of UtiliCorp.
"With this transaction, Aquila owns or controls more than 3,500
megawatts of generation in operation, construction and under active
development. We expect the earnings stream from additional ownership
in generation to complement our income from energy marketing and risk
management, as well as enhance our portfolio of independent power
The purchase will be accretive to UtiliCorp's earnings. GPU
reported that it expects to realize an after-tax gain on the sales of
$60 to $80 million to be reflected upon closing of the transaction.
The net proceeds will be used by GPU to reduce outstanding debt.
"We are pleased that the sale of our interests in these properties
will enable us to further focus on opportunities related to our core
infrastructure business, such as GPU's acquisition of the MYR Group, a
utility infrastructure services firm, as well as unregulated
businesses such as GPU Telcom strategic partnership with Sting
Communications to provide high-speed data services in the Northeast,"
said Fred D. Hafer, chairman, president and chief executive officer of
The sale is subject to certain regulatory approvals. Salomon Smith
Barney and Donald Lufkin & Jenrette were the investment advisors for
GPU and Aquila, respectively.
Based in Kansas City, Aquila Energy is one of the largest
wholesalers of electricity and natural gas in North America and an
innovative provider of risk management services. Aquila also provides
wholesale energy services in the U.K. and has a presence in
Scandinavia, Germany and Spain.
Aquila is a wholly owned subsidiary of UtiliCorp United, an
international energy company with about 4.5 million customers across
the U.S. and in Canada, Great Britain, New Zealand and Australia. At
June 30, 2000, UtiliCorp had $8.8 billion in assets and 12-month sales
of $21.4 billion. Further information is at www.utilicorp.com.
GPU, Inc. (NYSE:GPU), headquartered in Morristown, N.J., is a
registered public utility holding company providing utility and
utility-related services to customers throughout the world. GPU serves
It serves an additional 1.4 million customers indirectly through
GPU GasNet, its gas transmission subsidiary in Australia. GPU's 1999
revenues were $4.8 billion and its total assets were $21.7 billion.
GPU's other subsidiaries include MYR Group Inc., GPU Advanced
Resources, Inc., GPU Nuclear, Inc., GPU Service, Inc. and GPU Telcom
Services, Inc. (http://www.gpu.com).
The agreement covers the following properties:
Property Location Capacity GPU % Ownership
-------- -------- -------- ---------------
Onondaga Geddes, NY 91 MW 100
Selkirk Selkirk, NY 345 MW 20
Prime Energy Elmwood Park, NJ 65 MW 50
Mid-Georgia Kathleen, GA 305 MW 50
Pasco Dade County, FL 109 MW 50
Lake Cogen Umatilla, FL 110 MW 100
Saltillo Saltillo, MS 715 MW 50
||UtiliCorp, Kansas City
||Al Butkus, 816/467-3616
||Media Relations, 816/467-3000
||Ellen Fairchild, 816/467-3506
||GPU, Inc., Morristown
||Jeff Dennard, 973/401-8333
||Joanne Barbieri, 973/401-8720