National Grid in $1bn US deal
Tuesday 02 February 1999
The acquisition is being carried out through the much bigger New England Electric System, which National Grid agreed to buy in December for $4.6bn.
The purchase price is $31 a share - a 23 per cent premium to EUA's price in early December before merger speculation began.
National Grid is paying $634m for EUA and assuming a further $365m in debt.
However, National Grid is expected to recoup about $180m through sales of unwanted assets such as EUA's combined heat and power generating plants.
Analysts estimated that National Grid would realise savings of at least $25m a year by merging the transmission and distribution businesses of the two companies, which operate next to each other in the north-east region of the US.
National Grid said it hoped to receive regulatory and shareholder approval for both the US acquisitions by early 2000.
The aim is to complete the two deals on the same timetable.
EUA has 300,000 customers and made net profits of $40m on revenues of $569m in 1997. New England Electric System has 1.35 million customers.
At the time of the NEES deal, National Grid's chief executive, David Jones, made it clear that it was on the lookout for further acquisitions. He said the EUA deal was fully in line with that strategy.
- 1 The truth about 'girl things': Three cheers for Heather Watson's honesty
- 2 Man who held up 'hire me' sign at Waterloo station returns a year later with 'I'm hiring' sign
- 4 Tennis fan suing Australian Open organisers for 'failing to shade spectators' during Murray match
- 5 Syrian refugee child beaten by Istanbul Burger King manager for eating customer’s leftover food
Man who held up 'hire me' sign at Waterloo station returns a year later with 'I'm hiring' sign
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Rob Lowe hits out at White House decision not to meet Israeli leader
Iraq invasion 2003: The bloody warnings six wise men gave to Tony Blair as he prepared to launch poorly planned campaign
Winston Churchill: From accusations of anti-Semitism to the blunt refusal that led to the deaths of millions
British Muslim leaders outraged after Eric Pickles says followers of Islam should 'prove their identity'
UK terror fears: My jihadist son returned from Syria mentally scarred – now he is being ignored
Nigel Farage: NHS might have to be replaced by private health insurance
Billy Crystal: 'Stop shoving gay sex scenes in my face'
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
French court convicts three over homophobic tweets, in case hailed as a 'significant victory' by LGBT rights campaigners
iJobs Money & Business
Negotiable: Recruitment Genius: A Tax Assistant is required to join a leading ...
£16000 - £25000 per annum: Recruitment Genius: This is an exciting opportunity...
£45000 - £47000 per annum + bonus + benefits: Ashdown Group: Java Developer / ...
£35000 - £38000 per annum + Benefits: Ashdown Group: Marketing Manager - Marke...