Sale to Klesch & Co. Represents significant step in Dynegy’s planned divestiture
HOUSTON, Texas, Jan. 23, 2003 — Dynegy Inc. on Thursday announced the sale of its European communications business to an affiliate of Klesch & Company, a London-based private equity firm specializing in European restructurings, for an undisclosed sum. Dynegy expects to report a slight gain in the first quarter 2003 related to the sale.
Klesch & Company is acquiring Dynegy’s entire European communications operations consisting of a high-capacity broadband network with access points in 32 cities throughout Western Europe. The sale marks Dynegy’s exit from the European communications market – a business it established through its purchase of iaxis Limited in early 2001.
“This is a strong first step in Dynegy’s strategic commitment to divest its investment in communications and focus on our core energy businesses,” said Dynegy Inc. President and Chief Executive Officer Bruce Williamson. “The final phase of this commitment is the exit from the U.S. portion of our communications business. We expect full resolution on this issue in early 2003.”
Klesch & Company Chairman A. Gary Klesch said, “We believe that the European telecommunications arena may be bottoming out. Going forward, the sector has the potential to create value for those who are able to restructure to meet current demand.”
Dynegy Inc. owns operating divisions engaged in power generation, natural gas liquids and regulated energy delivery. Through these business units, the company serves customers by delivering value-added solutions to meet their energy needs.
Klesch & Company, a private equity firm based in London, specializes in investing in companies in need of restructuring. Klesch & Company has, for over 12 years, invested in a variety of industries from meat processing to cable television and from paper production to leisure home manufacturing.