$10 billion (market cap) electric utility owner PPL (PPL), which has operations primarily in the Northeastern U.S., has agreed to acquire the U.S. operations of Germany’s E.ON AG for $7.6 billion, confirming reports from earlier today by CNBC.
The rumors had sent the shares down almost 8% during the regular session; that stock is now up 11 cents in after-hours trading at $25.71.
The deal brings PPL 1.2 million customers, primarily in Kentucky, at utilities Louisville Gas & Electric Company and Kentucky Utilities Company.
PPL plans to pay for the deal with $6.7 billion of cash and the assumption of $925 million in debt.
Buried in the release, PPL pre-announced its earnings per share for Q1, turning in 94 cents, versus the consensus estimate of 86 cents.
PPL also reiterated a forecast for $3.10 to $3.50 per share in earnings from continuing operations for this year and $2.82 to $3.22 per share in reported earnings.
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