Entergy To Sell London Electricity
Nov. 30, 1998
NEW ORLEANS (AP) _ Entergy Corp. is selling London Electricity, a regional power distribution company in London, to France's national electrical utility for $3.18 billion.
The deal announced Monday was the second major transaction involving Entergy's overseas distribution companies in a week.
Entergy agreed to sell CitiPower, based in Melbourne, Australia, to U.S.-based AEP Resources Inc. for $1.1 billion on Nov. 23.
The sale of London Electricity to Electricite de France is the latest step in a restructuring plan under which New Orleans-based Entergy is focusing on core power generating businesses in an attempt to increase its profitability.
In August, Entergy decided to sell London Electricity and CitiPower to focus on international power development, nuclear power operations, power marketing and trading and power generation.
The company is trying to improve service to its regulated power markets in Louisiana, Texas, Mississippi and Arkansas.
Entergy purchased London Electricity in February 1997 for $2.1 billion. Entergy said it will have $860 million in cash from the deal after liquidating the debt it took on to make the purschase.
It expects to complete the deal on Dec. 4.
Entergy chairman Robert Luft said London Electricity, like CitiPower, was sold through a bidding process. He said there was strong interest in the London-based company from several bidders.
``This sale represents a full and fair valuation of London Electricity,'' Luft said in a statement.
Entergy also recently sold Efficient Solutions Inc., an energy management company and is looking for buyers for its security and telecommunications businesses.
Earlier in November, Entergy began expanding its nuclear power business, agreeing to buy the Pilgrim nuclear power plant in Plymouth, Mass., from BEC Energy for $80 million.