8-KOther Events

CENTERPOINT ENERGY INC 8-K Report (Dec 23, 2002)

Filed December 23, 2002For Securities:CNP

Summary

This Form 8-K filing from CenterPoint Energy, Inc. (CNP) on December 23, 2002, reports on a significant corporate action: the finalization of the distribution ratio for a pro rata distribution of approximately 19% of its wholly owned subsidiary, Texas Genco Holdings, Inc. (Texas Genco), to CenterPoint Energy shareholders. The established distribution ratio is .05, meaning shareholders of record as of December 20, 2002, will receive one share of Texas Genco common stock for every 20 shares of CenterPoint Energy common stock they hold. This transaction represents a substantial strategic move by CenterPoint Energy to spin off a portion of its business. Investors should pay close attention to the upcoming distribution date of January 6, 2003, and the accompanying information statement filed as an exhibit, which will provide further details on Texas Genco's business and operations. The spin-off is a key event that will likely impact the future structure and financial profile of CenterPoint Energy.

Key Highlights

  • 1CenterPoint Energy (CNP) has finalized the distribution ratio for its spin-off of Texas Genco Holdings, Inc.
  • 2Shareholders will receive one share of Texas Genco for every 20 shares of CNP held.
  • 3The distribution ratio is set at .05.
  • 4The record date for the distribution is December 20, 2002.
  • 5The distribution is expected to occur on January 6, 2003.
  • 6Approximately 19% of Texas Genco's outstanding common stock will be distributed.
  • 7An information statement detailing Texas Genco and the distribution has been filed as an exhibit.

Frequently Asked Questions

The main purpose of this 8-K filing is to announce and formalize the distribution ratio for CenterPoint Energy's spin-off of approximately 19% of its subsidiary, Texas Genco Holdings, Inc., to CenterPoint Energy shareholders.

As a shareholder of record on December 20, 2002, you will receive one share of Texas Genco common stock for every 20 shares of CenterPoint Energy common stock you own, based on the distribution ratio of .05.

The distribution of Texas Genco shares to CenterPoint Energy shareholders is expected to be made on January 6, 2003.

CenterPoint Energy will mail an information statement to its shareholders of record, which includes detailed information about Texas Genco's business and operations. A copy of this information statement was filed with this Current Report as Exhibit 99.1.