30 July 2002 – American Electric Power (AEP) has completed the sale of Seeboard, AEP’s retail electricity and gas supply and electricity distribution subsidiary in southeast England, to London Electricity Group plc (LE Group), one of the largest energy companies in the United Kingdom.
AEP announced on June 18 that it had signed an agreement to sell Seeboard to LE Group.
The Seeboard transaction is valued at approximately £1.39bn (approximately $2.18bn). Under terms of the agreement with LE Group, AEP will receive £670m (approximately $1.05bn) in cash for Seeboard, and LE Group will assume Seeboard debt of approximately £722m (approximately $1.13bn). The increase in the US dollar value of the transaction since the June 18 announcement is because of changes in the foreign exchange rate.
AEP says it will use the proceeds of the sale to reduce debt.
Seeboard, headquartered in Crawley, West Sussex, sells electricity and gas to about 1.9 million customers in the UK. The majority of these customers are in Kent, Sussex and parts of Surrey. AEP gained ownership of Seeboard on June 15, 2000, with the completion of AEP’s merger with Central and South West Corp., which had acquired Seeboard in January 1996 for approximately $2.1bn, including the assumption of Seeboard debt.
LE Group is responsible for the electricity distribution networks in London and Eastern England and supplies energy to nearly 3 million customers. LE Group is owned by Electricite de France (EdF).