8-KOther Events

AMEREN CORP 8-K Report (Jan 31, 2003)

Filed January 31, 2003For Securities:AEE

Summary

Ameren Corporation (AEE) announced the closing of its acquisition of CILCORP Inc. on January 31, 2003. CILCORP is the parent company of Central Illinois Light Company (CILCO), which will now operate as AmerenCILCO, becoming an indirect subsidiary of Ameren. This strategic acquisition, valued at approximately $1.4 billion, includes CILCORP's regulated natural gas and electric utility businesses and 1,200 megawatts of generating capacity. Ameren also expects to close the acquisition of AES Medina Valley Cogen (No. 4), LLC in February 2003, which will become part of its non-rate-regulated operations. The acquisition positions Ameren as Illinois' second-largest electric utility and is expected to be immediately accretive to earnings, aligning with Ameren's core energy growth strategy. The company has committed to maintaining current electric rates through 2006 and has outlined plans for continued civic contributions and economic development support in the Peoria area, where AmerenCILCO will be headquartered. This significant expansion strengthens Ameren's presence in Illinois and is anticipated to drive long-term growth.

Key Highlights

  • 1Ameren Corporation has successfully acquired CILCORP Inc., the parent company of Central Illinois Light Company (CILCO), effective January 31, 2003.
  • 2The acquired entity, CILCO, will operate under the new name AmerenCILCO and become an indirect subsidiary of Ameren.
  • 3The total transaction value is approximately $1.4 billion, with Ameren assuming $900 million in debt and preferred stock and paying the remainder in cash.
  • 4The acquisition significantly expands Ameren's operations in Illinois, making it the state's second-largest electric utility.
  • 5Ameren also plans to acquire AES Medina Valley Cogen (No. 4), LLC in February 2003, further enhancing its generation capacity.
  • 6Electric rates for AmerenCILCO customers are expected to remain frozen through 2006.
  • 7Ameren has committed to significant annual contributions for civic, charitable, and economic development initiatives in the Peoria area.

Frequently Asked Questions

This 8-K filing announces the closing of Ameren Corporation's acquisition of CILCORP Inc., which includes Central Illinois Light Company (CILCO), and details the significant financial and operational implications of this transaction for Ameren.

The acquisition is valued at approximately $1.4 billion, with Ameren assuming $900 million in debt and preferred stock and financing the balance through cash. Ameren expects the transaction to be immediately accretive to earnings and contribute to strong long-term growth.

Electric rates are planned to remain frozen through 2006. AmerenCILCO will be headquartered in Peoria, with existing operations centers and customer support functions maintained. Ameren also plans to honor existing labor contracts and expects minimal staff reductions primarily through attrition. Additionally, Ameren commits to providing at least $1 million annually for civic and charitable contributions in the Peoria area.

Besides the CILCORP acquisition, Ameren also announced the upcoming acquisition of AES Medina Valley Cogen (No. 4), LLC in February 2003, which will become part of its non-rate-regulated operations. The filing also names Scott A. Cisel and Robert G. Ferlmann as top operating officers for the newly formed AmerenCILCO.