LONDON, Dec. 18 /PRNewswire/ -- Entergy Corporation (NYSE: ETR) has announced a formal offer totaling US$2.1 billion cash to acquire London Electricity plc, the regional electric company serving approximately two million customers within the London, England area. The offer was announced by Entergy Power UK plc, a subsidiary of Entergy Corporation. London Electricity plc's Board of Directors has unanimously recommended the offer to its shareholders. The offer must now be approved by the appropriate U.K. authorities. Should no obstacles impede the approval process, the acquisition could be complete as early as March 1, 1997. In announcing the offer, Entergy's Chairman and President Ed Lupberger described the effort to acquire London Electricity plc as the product of "an unwavering commitment to a long term strategy -- now several years old -- of diversifying and growing Entergy Corporation's business. One of our goals," Lupberger said, is furthering our status as a world-class energy company, and this acquisition certainly goes a long way toward guaranteeing that objective. "In this particular instance," Lupberger said, "we approached London Electricity plc because we recognized that our companies shared a common style, philosophy, and vision for this industry and for the position we want to achieve and maintain in the industry as it evolves. We're convinced," Lupberger added, "that our common vision will produce benefits for our customers and for our shareholders." Entergy Corporation also recognized the U.K.'s leadership position in efforts to privatize the electric utility industry and in the movement toward full competition. Accordingly, it became obvious that there would be clear advantages to being a part of that experience by virtue of acquiring one of the regional electric companies. The US$2.1 billion acquisition values London Electricity plc's stock at 705 pence per share. The acquisition will be financed with US$400 million of equity from Entergy and Entergy Power Development International Corporation. In addition, there will be US$1.7 billion in non-recourse debt from a consortium of international banks. London Electricity plc's nearly 2 million customers reside within its 455-square-mile service area in greater London, a city of some 6 million inhabitants and one of the world's principal seats of government as well as a social, cultural, and financial center. The utility has approximately 4,400 employees. Earlier this month London Electricity plc released interim results for the six months ended September 30, 1996. Among the figures were gross revenues of US$1 billion and net income of US$91 million. Entergy Corporation (NYSE: ETR) is an energy company that extends its expertise and technology worldwide through the diversified energy and related services businesses it owns and operates. Entergy Corporation provides electricity and related services to about 2.4 million retail customers in Arkansas, Louisiana, Mississippi, and Texas, through regulated subsidiaries. Separate business units provide wholesale electricity to other utilities, invest in and manage domestic and overseas power systems, and provide customers with more cost-efficient lighting and energy systems. Entergy's on-line address is http://www.entergy.com SOURCE Entergy Corporation -0- 12/18/96 /CONTACT: Patrick Sweeney (Media), 504-576-4160 or 011-44-171-457-2345 London, or firstname.lastname@example.org; or Stuart Ball (Investor Relations), 504-576-4817 or email@example.com, both of Entergy/ (ETR) CO: Entergy Corporation; London Electricity plc ST: Louisiana IN: UTI SU: TNM -0- (PRN) Dec/18/96 6:55 EOS (PRN) Dec/18/96 06:55 86 â -0- (PRN) Dec/18/96 7:10
ENTERGY BIDS TO ACQUIRE LONDON ELECTRICITY PLC
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