Exhibit (c) 1
GPU News Release
June 20, 2000
GPU and Singapore Power International Reach
Agreement on Sale of GPU PowerNet
MORRISTOWN, NJ - June 20, 2000 - GPU, Inc. (NYSE: GPU) announced today that it
has entered into a definitive agreement with Singapore Power International
(SPI), a subsidiary of Singapore Power, for SPI to purchase GPU PowerNet, GPU's
electric transmission subsidiary in Australia, for A$2.1 billion (approximately
US$1.26 billion). Additional transaction considerations will raise the full
transaction value to approximately A$2.175 billion.
GPU and SPI have agreed to work towards a June 30, 2000 closing.
On May 24, GPU announced that it had declined all of the bids that were
submitted in connection with the intended sale of its two Australian subsidiary
companies, GPU PowerNet and GPU GasNet. Following that announcement, there was
renewed interest in the Australian companies and indications of improved
pricing. Discussions and continued negotiations with SPI led to today's
announcement.
As a result of the sale, GPU expects to record an estimated after-tax loss in
the second quarter of between $275 million to $300 million, which includes a $60
million currency loss. On a per share basis, these amounts come to a $2.27 to
$2.47 loss, which includes a $0.50 currency loss.
GPU said it will use the proceeds of the sale to reduce outstanding debt.
GPU, Inc. (NYSE: GPU), headquartered in Morristown, NJ, 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 companies -- GPU Energy in the US, GPU Power in the UK, and
Emdersa in Argentina. It serves another 1.4 million customers indirectly
through its electric and gas transmission subsidiaries PowerNet and GasNet in
Australia. The company's independent power project business units own interests
in and operate 22 projects in 7 countries and the US. GPU's 1999 revenues were
$4.8 billion and its total assets were $21.7 billion. GPU's other subsidiaries
include MYR Group, Inc., GPU Advanced Resources, Inc., GPU International, Inc.,
GPU Nuclear, Inc., GPU Service, Inc. and GPU Telcom Services, Inc.
(http://www.gpu.com)
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Contact:
GPU, Inc.
Ned Raynolds, (973) 401-8294
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