8-KMaterial AgreementsExhibits & Filings

EDISON INTERNATIONAL 8-K Report, Material Agreement (Oct 4, 2004)

Filed October 4, 2004For Securities:EIX

Summary

Edison International, through its subsidiary Edison Mission Energy (EME), has completed the sale of its subsidiary Mission Energy Universal Holdings (Universal Holdings). This transaction includes EME's 51.2% stake in Contact Energy Limited, a significant electricity generator and energy retailer in New Zealand. The sale, conducted following a competitive bidding process, generated approximately NZ$1.1 billion (US$739 million) in cash and assumed debt of NZ$535 million (US$359 million). The net cash proceeds are earmarked for reducing debt at another EME subsidiary, Mission Energy Holdings International, Inc. The sale, finalized on September 30, 2004, represents a strategic move by Edison International to divest non-core assets and strengthen its financial position by deleveraging. Investors should note the significant cash inflow and debt reduction, which are expected to improve the company's financial health and potentially enhance shareholder value.

Key Highlights

  • 1Completion of the sale of Mission Energy Universal Holdings (Universal Holdings) by Edison Mission Energy (EME), a subsidiary of Edison International.
  • 2Sale includes EME's 51.2% ownership interest in Contact Energy Limited, a major electricity generator and energy retailer in New Zealand.
  • 3Transaction generated approximately US$739 million in cash and US$359 million in assumed debt.
  • 4Net cash proceeds will be used to repay a portion of an $800 million secured loan at Mission Energy Holdings International, Inc.
  • 5Sale was conducted following a competitive bidding process.
  • 6Transaction officially closed on September 30, 2004, with accounting recognition on the same date.

Frequently Asked Questions

Edison International, through its subsidiary Edison Mission Energy (EME), sold its subsidiary Mission Energy Universal Holdings (Universal Holdings). This included EME's 51.2% ownership in Contact Energy Limited.

The sale generated approximately NZ$1.1 billion (approximately US$739 million) in cash.

The net cash proceeds from the sale, after accounting for transaction costs and taxes, will be used to repay a portion of an $800 million secured loan at Mission Energy Holdings International, Inc.

Contact Energy Limited generates about 30% of New Zealand's electricity and is one of the largest retailers of natural gas and electricity in New Zealand, indicating a material asset being divested.