8-KOther Events

CENTERPOINT ENERGY INC 8-K Report (Sep 24, 2002)

Filed September 24, 2002For Securities:CNP

Summary

CenterPoint Energy, Inc. (d/b/a Reliant Energy, Incorporated) filed a Form 8-K on September 24, 2002, reporting on a previously declared pro rata distribution of shares of Reliant Resources, Inc. (RRI) common stock to its common shareholders. The key event detailed is the establishment of the distribution ratio, set at 0.788603 shares of RRI for every one share of CenterPoint Energy common stock held by shareholders as of the record date, September 20, 2002. This distribution is a significant corporate action for CenterPoint Energy and its shareholders, effectively separating Reliant Resources into a distinct entity. Investors should note that the ratio was calculated based on the total number of RRI shares being distributed (240,000,000) and the total outstanding shares of CenterPoint Energy on the record date (304,335,457). Cash will be provided in lieu of fractional shares, which is a standard practice to simplify share distribution.

Key Highlights

  • 1CenterPoint Energy (d/b/a Reliant Energy) established the distribution ratio for its pro rata distribution of Reliant Resources, Inc. (RRI) shares.
  • 2The distribution ratio is set at 0.788603 shares of RRI common stock per share of CenterPoint Energy common stock.
  • 3The record date for determining shareholders eligible to receive the distribution was September 20, 2002.
  • 4Each common shareholder of CenterPoint Energy will receive approximately 0.788603 shares of RRI for each share they owned on the record date.
  • 5Cash payments will be issued in lieu of fractional shares to streamline the distribution process.
  • 6The ratio was derived by dividing the total RRI shares to be distributed (240,000,000) by CenterPoint Energy's outstanding shares (304,335,457) as of the record date.

Frequently Asked Questions

The main purpose of this 8-K filing is to officially announce and provide the specific distribution ratio for the pro rata distribution of Reliant Resources, Inc. (RRI) common stock to CenterPoint Energy's shareholders.

For each share of CenterPoint Energy common stock you owned as of the close of business on September 20, 2002 (the record date), you will receive 0.788603 shares of Reliant Resources, Inc. common stock.

CenterPoint Energy will make cash payments in lieu of fractional shares. This means you will receive a cash amount equivalent to the value of any fractional share you would have been entitled to, rather than receiving a partial share.

The record date to determine which shareholders were eligible to receive the distribution was the close of business on September 20, 2002.