CHICAGO, March 1, 2002 — Exelon Corp.’s business unit, Exelon Enterprises, announced an agreement to sell its 49% interest in AT&T Wireless PCS of Philadelphia, LLC (AT&T Wireless Philadelphia) to a subsidiary of AT&T Wireless Services for $285 million in cash.
The transaction is expected to close in the first half of 2002. Formed in 1996, AT&T Wireless Philadelphia is a joint venture of Exelon Communications and AT&T Wireless providing personal communications services (PCS) in the Philadelphia metropolitan trading area. The venture has completed the initial build-out of its digital wireless PCS network and commercially launched PCS service in October 1997.
Exelon Communications, a unit of Exelon Enterprises, expects to record a pretax gain on the sale of approximately $200 million. The after-tax gain is estimated at approximately $120 million with a resulting $0.37 earnings per share (diluted) gain.
The sale of the Exelon interest in the Philadelphia joint venture is consistent with the announced strategy to optimize the value of the Exelon Enterprises portfolio. Proceeds from the transaction will be used for Exelon’s general corporate purposes.
Credit Suisse First Boston served as financial advisor to Exelon.