01—Abstract
Summary
Summary of the 8-K filed February 28, 2001. Cited figures are marked; the original filing is the authoritative source.
Xcel Energy Inc. announced on February 27, 2001, an agreement in principle to sell a significant portion of its equity investment in Yorkshire Power.
This divestiture, excluding a residual 5%a interest, is a strategic move to bolster the company's financial position. The retained interest is primarily to satisfy accounting requirements stemming from the merger of Northern States Power and New Century Energies in August 2000. The proceeds from this sale are earmarked for reducing short-term debt and canceling a planned equity issuance for the latter half of 2001.
This action is expected to improve Xcel Energy's balance sheet and financial flexibility. The transaction is contingent on the buyer's shareholder approval and is anticipated to close by late March or early April 2001.
02—Key points
Key Highlights
- Xcel Energy to sell a majority stake (all but approximately 5%) in its Yorkshire Power equity investment.
- Sale is part of a strategic effort to improve the company's financial health.
- Retained 5% interest is for compliance with pooling-of-interests accounting from the Aug 2000 merger.
- Proceeds will be used to pay down short-term debt.
- The sale will eliminate a planned equity issuance for the second half of 2001.
- Transaction is subject to purchaser's shareholder approval.
- Expected closing date for the sale is late March or early April 2001.
03—Questions
Frequently Asked Questions
What is Xcel Energy selling and why?
Xcel Energy is selling most of its equity investment in Yorkshire Power, a UK regional electricity company. This sale is a strategic financial move to reduce short-term debt and avoid a planned equity issuance later in 2001.
What is Yorkshire Power?
Yorkshire Power is a joint venture, equally owned by a subsidiary of Xcel Energy and American Electric Power Company. It holds the shares of Yorkshire Electric, a UK regional electricity company.
Why is Xcel Energy keeping a 5% interest?
Xcel Energy is retaining a small interest (approximately 5%) to comply with specific pooling-of-interests accounting requirements related to its merger with New Century Energies in August 2000.
When is the sale expected to close?
The sale is expected to close in late March or early April 2001, pending approval from the purchaser's shareholders.
04—Continue