OMAHA, Neb., Dec. 24 /PRNewswire/ -- CalEnergy Company, Inc. ("CalEnergy")
(NYSE, PSE and LSE symbol: CE) announced today that the cash offer for
Northern Electric plc ("Northern") by CE Electric UK plc ("CE Electric") (a
company 70% owned by CalEnergy and 30% owned by Peter Kiewit & Sons', Inc.),
which had been extended until 1:00 p.m. GMT on December 24, 1996 was
successful and CE Electric owns over a majority of Northern's outstanding
Ordinary Shares and will extend its offers for the remaining minority equity
interest in Northern.
David L. Sokol, Chairman and CEO of CE Electric and CalEnergy said, "We
are delighted by the outcome of the final offer for Northern Electric.
Northern Electric is a good company with good people and a strong customer
base. We look forward to working with Northern Electric's management to put
in place a smooth transition."
The acquisition, when fully consumated, will be for an aggregate cash
purchase price of approximately $1.3 billion, funded from equity contributions
by CalEnergy and Kiewit and pursuant to a $700m fully-underwritten non-recourse commercial bank term facility.
Northern is one of the twelve U.K. regional electricity companies which
came into existence as a result of the restructuring and subsequent
privatization of the U.K. electricity industry in 1990. Its main business is
the distribution and supply of electricity to approximately 1.5 million
customers in the North East of England. For its fiscal year ended March 31,
1996, Northern had a profit before tax of approximately $241 million on
revenues of approximately $1.44 billion.
CalEnergy, a leading independent energy producer, is an international
developer, owner and operator of environmentally responsible power generation
facilities. Kiewit, a large primarily employee-owned, construction, mining
and telecommunications company, is an approximate 33% shareholder of the
The offer is not being made, directly or indirectly, in or into the United
States or by use of the mails or any means or instrumentality (including,
without limitation, facsimile transmission, telex and telephone) of interstate
or foreign commerce of, or any facilities of a national securities exchange
of, the United States and the offer cannot be accepted by any such use, means,
instrumentality or facility or from within the United States.
SOURCE CalEnergy Company, Inc.
/CONTACT: David L. Sokol - Chairman and Chief Executive Officer,
402-341-4500, or John G. Sylvia - Senior Vice President, Chief Financial
CO: CalEnergy Company, Inc.
-0- (PRN) Dec/24/96 11:39
EOS (PRN) Dec/24/96 11:39 86
-0- (PRN) Dec/24/96 11:54
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