SEI reaches agreement for purchase of SWEB

Southern Electric International Inc. and South Western Electricity plc (SWEB) of Bristol, England, announced today that they have reached agreement on the terms of a recommended cash offer for SWEB with a total value of approximately ?1.1 billion ($1.8 billion).

Southern Electric International and SWEB also have agreed that SWEB will pay its shareholders a special dividend, provided the revised offer becomes wholly unconditional. Together, the cash offer plus the net value of the special dividend total ?9.65 ($14.96) per SWEB share -- ?9 ($13.96) cash plus the special dividend of 65 pence ($1.00).

“We are very pleased to receive the recommendation of the SWEB board for the terms of our revised offer. We are offering a premium price but are confident that we can add value to SWEB’s business,” said Southern Electric International President Tom Boren.

Boren noted that the transaction still must be approved by regulatory officials in the UK, which include the Department of Trade and Industry (DTI) and the Office of Electricity Regulation (OFFER).

Key milestones in Southern Electric International’s offer for SWEB include:

- Southern Electric International acquires 11.2 percent of SWEB shares on July 17.

- Through purchases in the market in August, Southern Electric International has increased its holdings to approximately 29.9 percent of SWEB’s issued share capital. Southern Electric International is now SWEB’s largest shareholder.

- Sept. 15: The last day for the offer to become unconditional as to acceptances. At least 50.1 percent of shareholders would have accepted the offer at this time for the transaction to succeed.

- Oct. 6: Last day for fulfillment of any outstanding conditions of the offer.

Southern Electric International, a unit of The Southern Company of Atlanta, Ga., develops, builds, owns, and operates power production facilities and provides a broad range of technical services to industrial companies and utilities in the U.S. and international markets.

The Southern Company (NYSE: SO) is also the parent firm of five electric utilities: Alabama Power, Georgia Power, Gulf Power, Mississippi Power, and Savannah Electric. Other subsidiaries include Southern Nuclear and Southern Company Services. Together, these companies make up one of the largest investor-owned electric utility groups in the United States.


NOTE: Southern Electric International’s offer is not being made, directly or indirectly, in or into, or by use of the mails, or by any means or instrumentality (including, without limitation, facsimile transmission, telex, or telephone) of interstate or foreign commerce of, or through any facility of a national securities exchange in, the United States, and the offer cannot be accepted by any such use, means, instrumentality or through any such facility or from within the United States, Canada, or Australia.