Earlier, PPL announced its intention to sell all of its regulated electricity delivery businesses in Latin America. By mid-July, PPL had completed the sale of its businesses in Bolivia and El Salvador. With the final sale closing, Compania General de Electricidad (CGE) has acquired PPL’s 95.4% interest in Empresas Emel (Emel), which is headquartered in Santiago and has 575,000 customers in central and northern Chile.
As previously announced, PPL expects to record a special after-tax earnings gain from the sale of the Chilean company in the range of $205 million to $225 million, or $0.53 to $0.58 per share, in the fourth quarter of 2007.
Overall, PPL has received $851 million in proceeds from its Latin American divestitures. The company expects the sale of its combined Latin American portfolio to result in a net, special after-tax earnings gain in 2007 of $251 million to $271 million, or $0.66 to $0.71 per share, inclusive of special after-tax charges recorded in the first quarter related to the sale of the businesses.
Rick Klingensmith, president of PPL Global, said: There was strong interest in PPL’s Latin American operations, particularly in Chile, which resulted in a successful process that was completed more quickly than we had anticipated. The marketplace recognized the economic value PPL created through both our significant customer service improvements and the enhanced operational efficiencies in our Latin American businesses.
