- PPL (NYSE:PPL) closed the earlier announced sale of its U.K. utility business, Western Power Distribution to National Grid, leading to total cash proceeds of ~$10.7B (based on a foreign currency exchange rate of $1.36/£); net proceeds after taxes and fees expected to be ~$10.4B.
- Last week, U.K. regulator suspends National Grid's WPD deal pending review.
- The March announced acquisition of National Grid's Rhode Island utility business, Narragansett Electric remains on track to close as expected by March 2022.
- Both companies have completed all regulatory filings necessary for acquisition approval.
- PPL plans to use the $6.6B in net cash proceeds from the transactions for strengthening balance sheet and assist in growth opportunities.
- It seeks to reduce outstanding debt by ~$3B to $3.5B; among others, it plans to potentially investing incremental capital at PPL's utilities or in renewables, and repurchasing shares.