Kansas City, MO, April 3, 2008 — Great Plains Energy Inc. announced they’ve entered into definitive agreements with Direct Energy, a subsidiary of Centrica plc, under which Direct Energy will acquire from Great Plains Energy all of the outstanding ownership interests in Strategic Energy LLC for $300 million in cash, subject to closing adjustments.
Strategic Energy’s revenues averaged approximately 58 percent of Great Plains Energy’s revenue over the last three years and 24 percent of Great Plains Energy’s income from operations in 2007.
The transaction is subject to regulatory approval from the Federal Energy Regulatory Commission; Hart-Scott-Rodino antitrust review; Exon-Florio review; as well as other customary closing conditions. The transaction is expected to close in the second quarter of 2008.
“Proceeds from the transaction will be used to offset some of Great Plains Energy’s anticipated financing needs in 2008. Also beginning in the second quarter Strategic Energy’s revenue and direct expense will be reported as discontinued operations in our financial statements until the transaction closes,” said Terry Bassham, Great Plains Energy’s executive vice president of finance and strategic development and CFO.
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