Southern Sells Additional Stake in British Utility to PP&L Unit
Southern Energy Inc. has sold an additional 26 percent interest in SWEB Holdings -- the parent firm of South Western Electricity -- for $170 million to PP&L Global.
Boren pointed out that SWEBs shares in the National Grid and the Grids pumped storage business -- both included in Southern Energys original acquisition price -- have since been sold and were not included in this transaction. In addition, a prudent amount of debt was previously issued to help finance the original investment.
Southern Energy -- a unit of Southern Company -- develops, builds, owns and operates power production and delivery facilities and provides a broad range of services to utilities and industrial companies around the world. Southern Energy supplies energy in 10 countries on four continents.
Southern Company (NYSE: SO), the largest producer of electricity in the United States, is also the parent firm of Alabama Power, Georgia Power, Gulf Power, Mississippi Power and Savannah Electric. Based in Atlanta, its common stock is one of the 20 most widely held corporate stocks in America.
PP&L Global, a subsidiary of PP&L Resources, Inc., develops, owns and operates electric generation and distribution companies worldwide. In addition to its interest in South Western Electricity, a U.K. distribution company, PP&L Global also owns 29 percent of Emel, a distribution company in Chile and has holdings in El Salvador, Argentina, Brazil, Bolivia, Peru, Spain and Portugal.
PP&L Resources, based in Allentown, Pennsylvania, also is the parent company of PP&L, Inc., which provides electricity service to 1.2 million homes and businesses in Pennsylvania. PP&L generates and sells retail electricity throughout Pennsylvania and trades wholesale energy in 25 states and Canada. Other PP&L Resources companies include PP&L Spectrum, an energy services company, and H.T. Lyons, an energy management and heating, ventilating and air-conditioning firm.