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.
Frequently Asked Questions
Duke Energy is selling its 50% ownership interest in DukeNet Communications Holdings, LLC, a regional fiber optic network company, to Time Warner Cable Inc.
The total consideration for the sale of 100% of DukeNet is $600 million. Duke Energy's share of the proceeds is expected to be approximately $210 million after certain adjustments.
The transaction is expected to close in the first quarter of 2014, provided that customary closing conditions, including regulatory approvals, are met.
Duke Energy expects to recognize a gain from this sale. However, this gain will be classified as a special item and will be excluded from the company's adjusted diluted earnings per share calculations.