SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (date of
earliest event reported): December 20, 1999
Commission Registrant, State of Incorporation, I.R.S. Employer
File Number Address and Telephone Number Identification No.
1-6047 GPU, Inc. 13-5516989
(a Pennsylvania corporation)
300 Madison Avenue
Morristown, New Jersey 07962-1911
Telephone (973) 455-8200
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ITEM 5. OTHER EVENTS.
As previously reported, GPU has initiated plans to raise at least U.S.
$500 million through the sale of assets and use the proceeds from these sales to
reduce debt and provide funding for additional repurchases of its common stock
and investments in growth initiatives.
On December 20, 1999, GPU announced that it had engaged a financial
advisor to seek proposals to purchase at least 50% of its ownership in GPU
PowerNet and GPU GasNet, the electric and gas transmission companies serving
Victoria. GPU PowerNet was acquired in October 1997 and GPU GasNet was acquired
in May 1999 from the Victorian government for A$2.555 billion and A$1.025
billion, respectively.
GPU expects that the sale process could be completed in the first
quarter of 2000.
A copy of GPU's related news release is annexed as an exhibit.
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ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
(c) Exhibit
1. GPU News Release, dated December 20, 1999.
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SIGNATURE
PURSUANT TO THE REQUIREMENTS OF THE SECURITIES EXCHANGE ACT OF 1934,
THE REGISTRANT HAS DULY CAUSED THIS REPORT TO BE SIGNED ON ITS BEHALF BY THE
UNDERSIGNED THEREUNTO DULY AUTHORIZED.
GPU, INC.
By: /s/ T. G. Howson
T. G. Howson, Vice President
and Treasurer
Date: December 27, 1999
EXHIBIT TO BE FILED BY EDGAR
(c) 1 GPU News Release, dated December 20, 1999.
Exhibit (c) 1
GPU News Release
December 20, 1999
GPU Plans Sale of Australian Assets
MORRISTOWN, N.J. - December 20, 1999 - GPU, Inc. announced today that it plans
to reduce its investment in the Australian energy sector through the sale of a
significant portion of its holdings there. Earlier this year, GPU announced
plans to raise at least $500 million through the sale of assets and use those
proceeds to reduce debt levels and provide funding for additional repurchases of
its common stock and investments in growth initiatives.
GPU has retained Deutsche Bank as advisors and expects the sale process to be
complete during the first quarter of 2000. It will offer for sale, separately or
together, at least 50% ownership of GPU PowerNet and GPU GasNet the electric and
gas transmission companies serving Victoria.
GPU PowerNet was acquired in October 1997 and GPU GasNet was acquired in May
1999 from the Victorian government for A$2.555 billion and $1.025 billion
respectively.
Commenting on GPU's experience in Australia, Bruce Levy, chief financial officer
said that he viewed the investments as successes for both GPU and for the people
of Victoria, "We have exchanged know-how and technologies between our US, UK
operations and Australia leading to improved efficiencies and lower cost in all
places."
Levy also confirmed that the company is continuing its review of its portfolio
of investments with respect to possible additional sales to provide further
funding for stock repurchase and investments in growth initiatives.
GPU PowerNet is an electric transmission network that covers a territory of
about 90,000 square miles (233,100 square kilometers) and serves a population of
4.5 million people in the Australian state of Victoria.
GPU GasNet encompasses 1,105 miles (1,778 kilometers) of gas transmission
pipeline and consists of two separate networks, the Principal System and the
Western System. Both systems supply all of the natural gas consumed in the
Australian state of Victoria, including the state's capital-Melbourne.
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GPU, Inc. (NYSE: GPU), headquartered in Morristown, N.J., is a registered public
utility holding company providing utility and utility related services to
customers throughout the world. GPU serves 4.6 million customers directly
through its electric distribution subsidiaries -- GPU Energy in the United
States, Midlands Electricity plc. in the United Kingdom and GPU Emdersa in
Argentina. It serves another 1.4 million customers indirectly through its
electric and gas transmission subsidiaries, GPU GasNet and GPU PowerNet in
Australia. GPU's revenues were $4.3 billion and its total assets were $16.3
billion in 1998. Other GPU subsidiaries include GPU Advanced Resources, Inc.,
GPU International, Inc., GPU Nuclear, Inc., GPU Service, Inc. and GPU Telcom
Services, Inc.
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Contact:
GPU, Inc., Morristown, N.J.
Jeff Dennard, 973-455-8333
(http://www.gpu.com)
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