HOUSTON, Oct. 27, 2000 (PRNewswire) Enron Corp. (NYSE: ENE) announced today that it made a proposal to the Board of Directors of Azurix Corp. (NYSE: AZX) to provide funding to take Azurix private at a buy-out price of $7.00 per share. Enron proposed to finance up to $275 million for the sole purpose of funding the buy-out. The specific structure of the proposal has yet to be determined.
The proposed cash buy-out allows Azurix public shareholders to receive a significant premium to the market price of Azurix. Enron believes the value offered also would be greater than any sale to a third party.
The proposed buy-out provides other benefits to Azurix, including a significant near-term reduction in Azurix’s general and administrative expenses, greater certainty to Azurix’s customers and employees and increased flexibility for restructuring Azurix’s assets and business.
Enron expects its proposal to have a neutral impact on its own positive earnings and credit outlook.
Enron is one of the world’s leading electricity, natural gas and communications companies. The company, with revenues of $40 billion in 1999 and $60 billion for the first nine months of 2000, markets electricity and natural gas, delivers physical commodities and financial and risk management services to customers around the world, and is developing an intelligent network platform to facilitate online business. Fortune magazine has named Enron “America’s Most Innovative Company” for five consecutive years, the top company for “Quality of Management” and the second best company for “Employee Talent.” Enron’s Internet address is www.enron.com. The stock is traded under the ticker symbol “ENE”.