Aquila Energy Reaches Agreement to Acquire GPU International.Business Editors KANSAS CITY Kansas City, two adjacent cities of the same name, one (1990 pop. 149,767), seat of Wyandotte co., NE Kansas (inc. 1859), the other (1990 pop. 435,146), Clay, Jackson, and Platte counties, NW Mo. (inc. 1850). , Mo.--(BUSINESS WIRE)--Oct. 5, 2000 Aquila Energy, a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of UtiliCorp United (NYSE NYSE See: New York Stock Exchange :UCU UCU University and College Union (UK) UCU Ucore Uranium Inc (stock symbol) UCU University College Utrecht (The Netherlands) UCU University Credit Union ), and GPU GPU: see secret police. (Graphics Processing Unit) A specialized logic chip devoted to rendering 2D or 3D images. Display adapters contain one or more GPUs for fast graphics rendering. , Inc. (NYSE:GPU) today announced that they have executed a definitive $225 million agreement for Aquila to purchase GPU's wholly owned subsidiary, GPU International Inc., including its interests in six independent U.S.-based generating plants and a development generating project. GPU's interests in the generating plants represent about 500 megawatts of capacity, and it owns a one-half interest in the 715-megawatt development project. At closing, the corporate employees currently associated with GPU International will be considered for transfer to Aquila. The transaction is expect to close by the end of the year. "These assets are an excellent strategic fit for us," said Robert K. Green, chairman of Aquila Energy and president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. of UtiliCorp. "With this transaction, Aquila owns or controls more than 3,500 megawatts of generation in operation, construction and under active development. We expect the earnings stream from additional ownership in generation to complement our income from energy marketing and risk management, as well as enhance our portfolio of independent power projects." The purchase will be accretive to UtiliCorp's earnings. GPU reported that it expects to realize an after-tax gain on the sales of $60 to $80 million to be reflected upon closing of the transaction. The net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). will be used by GPU to reduce outstanding debt. "We are pleased that the sale of our interests in these properties will enable us to further focus on opportunities related to our core infrastructure business, such as GPU's acquisition of the MYR MYR In currencies, this is the abbreviation for the Malaysian Ringgit. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. Group, a utility infrastructure services firm, as well as unregulated businesses such as GPU Telcom strategic partnership with Sting Communications to provide high-speed data services in the Northeast," said Fred D. Hafer, chairman, president and chief executive officer of GPU. The sale is subject to certain regulatory approvals. Salomon Smith Barney Smith Barney is a division of Citigroup Global Capital Markets Inc., a global, full-service financial firm, that provides brokerage, investment banking and asset management services to corporations, governments and individuals around the world. and Donald Lufkin & Jenrette were the investment advisors for GPU and Aquila, respectively. Based in Kansas City, Aquila Energy is one of the largest wholesalers of electricity and natural gas 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. and an innovative provider of risk management services. Aquila also provides wholesale energy services in the U.K. and has a presence in Scandinavia, Germany and Spain. Aquila is a wholly owned subsidiary of UtiliCorp United, an international energy company with about 4.5 million customers across the U.S. and in Canada, Great Britain, New Zealand New Zealand (zē`lənd), island country (2005 est. pop. 4,035,000), 104,454 sq mi (270,534 sq km), in the S Pacific Ocean, over 1,000 mi (1,600 km) SE of Australia. The capital is Wellington; the largest city and leading port is Auckland. and Australia. At June 30, 2000, UtiliCorp had $8.8 billion in assets and 12-month sales of $21.4 billion. Further information is at www.utilicorp.com. GPU, Inc. (NYSE:GPU), headquartered in Morristown, N.J., is a registered public utility holding company providing utility and utility-related services to customers throughout the world. GPU serves 4.6 million customers directly through its electric companies -- GPU Energy in the U.S., GPU Power UK in England, and Emdersa in Argentina. It serves an additional 1.4 million customers indirectly through GPU GasNet, its gas transmission subsidiary in Australia. GPU's 1999 revenues were $4.8 billion and its total assets were $21.7 billion. GPU's other subsidiaries include MYR Group Inc., GPU Advanced Resources, Inc., GPU Nuclear, Inc., GPU Service, Inc. and GPU Telcom Services, Inc. (http://www.gpu.com).
The agreement covers the following properties:
Property Location Capacity GPU % Ownership
-------- -------- -------- ---------------
Onondaga Geddes, NY 91 MW 100
Selkirk Selkirk, NY 345 MW 20
Prime Energy Elmwood Park, NJ 65 MW 50
Mid-Georgia Kathleen, GA 305 MW 50
Pasco Dade County, FL 109 MW 50
Lake Cogen Umatilla, FL 110 MW 100
Saltillo Saltillo, MS 715 MW 50
(Under Development)
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