ALLETE's Sale of Water Assets Nearly Complete.Business Editors DULUTH, Minn.--(BUSINESS WIRE)--Dec. 5, 2003 With the closing of two transactions today, ALLETE, Inc. (NYSE NYSE See: New York Stock Exchange :ALE) announced it has substantially completed the sale of its Water Services businesses. ALLETE subsidiary Florida Water Services Corporation closed today on the sale of its water and wastewater systems serving Lee County and Citrus County, Florida Citrus County is a county located in the U.S. state of Florida. As of 2000, the population was 118,085. The U.S. Census Bureau 2006 estimate for the county is 138,143 [1]. Its county seat is Inverness, Florida6. . The systems were sold to a local governmental authority for approximately $51 million. ALLETE has been in the process of selling its Water Services businesses, which are comprised primarily of Florida Water Services Corporation and North Carolina-based Heater Utilities, Inc. All of the previously announced water services transactions have been closed with the exception of Charlotte County, Florida Charlotte County is a county located in the U.S. state of Florida. As of 2000, the population was 141,627. The U.S. Census Bureau 2006 estimate for the county is 158,438 [1]. Its county seat is Punta Gorda, Florida6. , and Heater Utilities, which are scheduled to close this month and in 2004, respectively. Heater will be sold for $48 million, including the buyer assuming approximately $28 million in debt, and Charlotte County will be sold for approximately $4 million. Total sale proceeds from all announced transactions will be approximately $490 million, representing an after-tax gain of approximately $90 million. The associated net cash proceeds after transaction costs Transaction Costs Costs incurred when buying or selling securities. These include brokers' commissions and spreads (the difference between the price the dealer paid for a security and the price they can sell it). , retirement of most water services debt and payment of income taxes are approximately $300 million and will be used to retire debt and securities at ALLETE. ALLETE's corporate headquarters are located in Duluth, Minnesota. ALLETE's holdings include ADESA, the second largest wholesale vehicle auction network in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. ; AFC (1) (Application Foundation Classes) A class library from Microsoft that provides an application framework and graphics, graphical user interface (GUI) and multimedia routines for Java programmers. , the leading provider of independent auto dealer financing; Minnesota Power, a low-cost electric utility that serves some of the largest industrial customers in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. ; and significant real estate holdings in Florida. For more information about ALLETE, visit the company's Web site at www.allete.com. The statements contained in this release and statements that ALLETE may make orally in connection with this release that are not historical facts, are forward-looking statements. Actual results may differ materially from those projected in the forward-looking statements. These forward-looking statements involve risks and uncertainties and investors are directed to the risks discussed in documents filed by ALLETE with the Securities and Exchange Commission. |
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