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POWERGEN, LG&E ENERGY ANNOUNCE MERGER COMPLETION
(LOUISVILLE, Ky. - Dec. 11, 2000) Powergen plc (LSE; NYSE: PWG) of the United
Kingdom and LG&E Energy Corp. of Louisville, Ky., have successfully completed
the merger involving the two companies and have formally begun joint operations.
The merger received the approval of all state and federal regulatory
bodies as well as shareholders of both companies.
LG&E Energy will maintain its headquarters in Louisville, Ky., which
will serve as the headquarters for Powergen's North American operations. LG&E
Energy's utility subsidiaries, Louisville Gas and Electric Company and Kentucky
Utilities Company, will continue as separate subsidiary corporations with joint
operations and with headquarters in Louisville and Lexington, Ky., respectively.
"We have worked toward this positive outcome for many months and we
couldn't be happier that the day has finally arrived when we can celebrate the
combining of these two well-run companies into one of world's finest energy
services firms," said Ed Wallis, Powergen's chairman and chief executive. "The
fact that we've moved this far this fast is a tremendous tribute to our
management and our employees. And, of course, we couldn't have reached this
milestone without the input and support of our regulators and customers. We will
quickly demonstrate to them that their confidence in us was well placed."
In addition to remaining as LG&E Energy's chairman and chief
executive officer, Roger W. Hale now joins Powergen's board of directors. He
also will serve on a three-person LG&E Energy board of directors, along with Mr.
Wallis and David Jackson of Powergen. A U.S. advisory board will also be
appointed.
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MERGER COMPLETION
ADD ONE - DECEMBER 11, 2000
Mr. Hale also will continue as chairman and chief executive officer
of LG&E and KU and will be joined on the boards of directors of those companies
by Mr. Wallis and Mr. Jackson, as well as by the six current outside directors
of Powergen. Senior management at LG&E Energy, LG&E and KU remains largely in
place.
LG&E Energy's final day of trading on the New York Stock Exchange
is Monday, December 11. Shortly, LG&E Energy shareholders of record on
December 11 should receive letters of transmittal from Powergen's paying
agent, Computershare Trust Company of New York, containing instructions for
submitting their stock certificates for the agreed upon cash payment of
$24.85 a share. Additionally, separate from the exchange process, a partial
dividend of 25.276 cents per share will be paid to LG&E Energy shareholders
of record on December 8. The dividend will be payable fifteen days from the
closing date.
The merger creates a global power company with assets of nearly $12
billion and total revenues of $8.7 billion, serving four million customers
worldwide.
"While we've made history with this merger, we're convinced that
there is plenty of history yet left to write," Wallis said.
LG&E Energy Corp. headquartered in Louisville, Ky., is a diversified
energy services company with businesses in power generation and project
development; retail gas and electric utility services; and asset-based energy
marketing. The company owns and operates Louisville Gas and Electric Company, a
regulated electric and gas utility serving Louisville, Ky. and 16 surrounding
counties; and Kentucky Utilities Company, a regulated electric utility, based in
Lexington, Ky., which serves customers in 77 Kentucky counties and five counties
in Virginia. LG&E Energy also owns equity in and operates non-utility power
plants in six states as well as in Spain; owns interests in three natural gas
distribution companies in Argentina; and owns CRC-Evans Pipeline International
Inc., the world's leading provider of specialty equipment and services to the
natural gas and oil pipeline construction industry.
Powergen is a British company and one of the world's major power
businesses. It is one of the UK's leading integrated gas and electric companies,
generating about 14 percent of the electricity needs of England and Wales. The
company has a growing retail customer base of over 2.6 million customer
accounts, is the market leader in provision of large scale combined heat and
power plant and in the industrial and commercial electricity market. The UK
business is split into five divisions: generation, distribution, combined heat
and power and distribution.
STATEMENTS MADE IN THIS RELEASE THAT STATE THE COMPANY'S OR MANAGEMENT'S
INTENTIONS, EXPECTATIONS OR PREDICTIONS OF THE FUTURE ARE FORWARD LOOKING
STATEMENTS. THE COMPANY'S ACTUAL RESULTS COULD DIFFER MATERIALLY FROM THOSE
PROJECTED IN THE FORWARD-LOOKING STATEMENTS, AND THERE CAN BE NO ASSURANCE THAT
ESTIMATES OF FUTURE RESULTS WILL BE ACHIEVED. THE COMPANY'S SEC FILINGS CONTAIN
ADDITIONAL INFORMATION CONCERNING FACTORS THAT COULD CAUSE ACTUAL RESULTS TO
DIFFER MATERIALLY FROM THOSE IN THE FORWARD-LOOKING STATEMENTS.
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