COLUMBUS, Ohio, July 29, 2002 — American Electric Power has completed the sale of SEEBOARD, AEP’s retail electricity and gas supply and electricity distribution subsidiary in southeast England, to London Electricity Group plc (LE Group), one of the largest energy companies in the United Kingdom.
AEP announced on June 18 that it had signed an agreement to sell SEEBOARD to LE Group.
The SEEBOARD transaction is valued at approximately UK pound sterling 1.39 billion (approximately US$2.18 billion). Under terms of the agreement with LE Group, AEP will receive UK pounds 670 million (approximately US$1.05 billion) in cash for SEEBOARD, and LE Group will assume SEEBOARD debt of approximately UK pounds 722 million (approximately US$1.13 billion).
The increase in the U.S. dollar value of the transaction since the June 18 announcement is because of changes in the foreign exchange rate.
AEP will use the proceeds of the sale to reduce debt.
SEEBOARD, headquartered in Crawley, West Sussex, sells electricity and gas to about 1.9 million customers in the UK. The majority of these customers are in Kent, Sussex and parts of Surrey. AEP gained ownership of SEEBOARD on June 15, 2000, with the completion of AEP’s merger with Central and South West Corp., which had acquired SEEBOARD in January 1996 for approximately US$2.1 billion, including the assumption of SEEBOARD debt.
LE Group is responsible for the electricity distribution networks in London and Eastern England and supplies energy to nearly 3 million customers. LE Group is owned by Electricite de France (EDF).
American Electric Power is a multinational energy company with a balanced portfolio of energy assets. AEP, the United States’ largest electricity generator, owns and operates more than 42,000 megawatts of generating capacity in the U.S. and select international markets.
AEP is a wholesale energy marketer, ranking among North America’s top providers of wholesale power and natural gas with a growing wholesale presence in European markets.
In addition to electricity generation, AEP owns and operates natural gas pipeline systems, natural gas storage, coal mines, and the fourth-largest inland barge company in the U.S. AEP is also one of the largest electric utilities in the United States, with almost 5 million customers linked to AEP’s wires. The company is based in Columbus, Ohio.