Npower boss welcomes 'Big Seven' after £218 million energy deal with Telecom Plus
The deal is expected to be completed by early January
Npower chief executive officer Paul Massara has said Britain is "well on its way to having a big seven rather than a big six" energy sector after selling its electricity and gas subsidiaries to smaller rival.
The £218 million deal sees Telecom Plus, a supplier of energy and telephone services trading as Utility Warehouse, buying npower’s energy subsidiaries. The two have also agreed a wholesale deal in which npower will supply Telecom Plus for 20 years.
The utility’s shares leapt by 14%, rising 208.40p to 1,715.40p.
“In one move we have helped create the biggest independent competitor in Britain’s household energy supply market... Britain is well on the way to having a Big Seven rather than a Big Six,” said Massara.
“This is a transformational deal for the company,” added Telecom Plus’s executive chairman Charles Wigoder.
Meanwhile, the company’s chief executive, Andrew Lindsay, said his existing electricity and gas retail business had gained from the bad publicity surrounding the recent price hikes announced by the Big Six energy providers.
He added: “The anticipated acquisition of our own energy supply licences from npower enabled us to keep our recent price rises significantly below the average of those which had previously been announced by the Big Six”.
The deal will be partly financed through a £130m share placing underwritten by Peel Hunt and borrowings. Telecom Plus also reported a 10% rise in first-half profit and raised its interim dividend by 23%.
- 1 Emma Watson on Jennifer Lawrence naked photo leak: 'Even worse than seeing women's privacy violated is reading the comments'
- 2 Saudis risk new Muslim division with proposal to move Mohamed’s tomb
- 3 A teacher speaks out: 'I'm effectively being forced out of a career that I wanted to love'
- 4 Cee Lo Green: It is only rape if the victim is conscious
- 5 Nigerian witch-finder Helen Ukpabio threatens legal action against human rights organisations
Emma Watson on Jennifer Lawrence naked photo leak: 'Even worse than seeing women's privacy violated is reading the comments'
Victoria Justice on naked photo leak: 'Let me nip this in the bud right now – pun intended'
Ariana Grande nude photos leak: Pictures are completely fake, say representatives
Saudis risk new Muslim division with proposal to move Mohamed’s tomb
Kate Upton nude photos leak: Model's spokespeople 'looking into' authenticity of indecent images
Rotherham child sex abuse scandal: Labour Home Office to be probed over what Tony Blair's government knew - and when
What do immigrants really think of Britain? Polish immigrant's Reddit post goes viral
Ashya King: Parents of five-year-old boy refused permission to visit him in hospital and denied bail at Spanish court
With Douglas Carswell joining Ukip, my party has taken another giant step forward
When elitism grips the top of British society to this extent, there is only one answer: abolish private schools
Ashya King: 'Cruel NHS has not given us the treatment we need', says father of five-year-old with brain tumour who fled to Spain
iJobs Money & Business
£35000 - £38000 per annum + benefits: Ashdown Group: Executive Assistant/Event...
£30000 - £32000 per annum: Ashdown Group: HR Generalist (standalone) - Tunbrid...
£600 - £800 per day: Harrington Starr: Derivatives Risk Commodities Business A...
£600 - £800 per day: Harrington Starr: Power & Gas Business Analyst/Subject Ma...