Summary
Duke Energy Corporation (DUK) announced on October 7, 2013, that it has entered into an agreement to sell its 50% ownership interest in DukeNet Communications Holdings, LLC ("DukeNet") to Time Warner Cable Inc. for a total transaction value of $600 million. DukeNet is a regional fiber optic network company. This divestiture is part of Duke Energy's strategy to focus on its core utility operations.
Key Highlights
- 1Duke Energy is selling its 50% stake in DukeNet Communications Holdings, LLC to Time Warner Cable Inc.
- 2The total consideration for the sale of 100% of DukeNet is $600 million.
- 3Duke Energy expects to receive approximately $210 million in net cash proceeds after accounting for debt repayment, transaction expenses, and adjustments.
- 4The transaction is anticipated to close in the first quarter of 2014, subject to regulatory approvals and other customary closing conditions.
- 5The gain from this sale will be treated as a special item and excluded from Duke Energy's adjusted diluted earnings per share calculations.
- 6DukeNet is a regional fiber optic network company.