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
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
/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/
CO: Entergy Corporation; London Electricity plc
-0- (PRN) Dec/18/96 6:55
EOS (PRN) Dec/18/96 06:55 86
-0- (PRN) Dec/18/96 7:10
Press spacebar to pause and continue. Press esc to stop.