Allentown, PA, Sept. 12, 2007 — PPL Corp. announced that it has agreed to sell its controlling interest in a Chilean electricity delivery business to Compania General de Electricidad S.A. (CGE).
CGE has agreed to acquire PPL’s 95.4 percent interest in Empresas Emel S.A. (Emel) for $660 million. The transaction is expected to close by mid-November 2007, following a public tender process for the total shares issued by Emel.
Emel, headquartered in Santiago, has 575,000 electricity delivery customers in central and northern Chile.
As a result of the sale, PPL said it expects to record a fourth-quarter special after-tax earnings gain in the range of $205 million to $225 million, or 53 to 58 cents per share, subject to final accounting and tax calculations.
PPL announced its intention to sell its Latin American operations in March, saying that, since it did not intend to significantly grow its interests in the region, it was acting to take advantage of attractive market valuations for solidly performing operations in the region. The company completed sales of its electricity delivery companies in El Salvador and Bolivia in May and July, respectively.
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