GLASGOW, Scotland, Dec. 21, 2000 (BUSINESS WIRE)ScottishPower (NYSE: SPI; LSE: SPW), an international multi-utility, today announced the acquisition of Powergen’s 715 MW Rye House Power Station for a cash consideration of £220 million.
In acquiring Rye House ScottishPower will assume the station’s gas purchase contract with Exxon Mobil, which expires in September 2008. Taking account of the gas purchase contract ScottishPower estimates the effective price of the acquisition to be equivalent to a competitive £450/kW of installed capacity. A provision will be made on completion for the excess cost of the gas purchase contract.
Sir Ian Robinson, Chief Executive of ScottishPower, said: “We are delighted with this purchase which, with the imminent opening of our new Brighton plant, will take our generation capacity in England and Wales to approximately 1000 MW.
“This helps ScottishPower towards our aim of balancing, at the right price, our generation capacity outside Scotland to the needs of our growing customer base in the rest of the UK.”
As part of the transaction Powergen have agreed to purchase the entire output of the plant until March 2002.
All 37 staff at Rye House will be transferred to ScottishPower on completion.
The proposed acquisition is subject to a number of conditions, including regulatory approval. Completion is expected in February 2001. The acquisition is
The ScottishPower (NYSE: SPI) group supplies energy to millions of business and domestic customers across the UK, where it serves approximately one in five British households, and in the Western United States, through its merger with PacifiCorp in November 1999.
The group is also active in telecommunications and retains a majority interest of its telecom subsidiary Thus (LSE: THU.S.).
ScottishPower’s ADR, equivalent to four ordinary shares, trades on the New York Stock Exchange under the symbol SPI. ScottishPower’s ordinary shares trade on the London Stock Exchange. Prices may be accessed on Bloomberg under the symbols SPI and SPW LN, on the Reuter Equities 2000 Service under SPI.N and SPW.L and on Quotron under SPWU.EU.