SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report: December 20, 1996
LG&E ENERGY CORP.
(Exact name of registrant as specified in its charter)
Kentucky 1-10568 61-1174555
(State or other (Commission (I.R.S. Employer
jurisdiction of File Number) Identification No.)
incorporation)
220 West Main Street
P.O. Box 32030
Louisville, KY 40232
(Address of principal executive offices)
(502) 627-2000
(Registrant's telephone number)
Item 5. Other Events.
On December 16, 1996, LG&E Energy Corp. announced it had agreed to acquire
interests in two Argentine natural gas distribution companies. The company
will buy a controlling interest in and manage Distribuidora de Gas del Centro
and acquire a minority interest in Distribuidora de Gas del Cuyana. The
investment in these companies will total $140 million.
Item 7(c). Exhibits Filed.
Exhibit
Number Description
99.01 News Release dated December 16, 1996.
SIGNATURES
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.
LG&E ENERGY CORP.
Registrant
Date: December 20, 1996 /s/ Walter Z. Berger
Walter Z. Berger
Executive Vice President and
Chief Financial Officer
(On behalf of the registrant in his
capacity as Principal Financial Officer)
Exhibit 99.01
LG&E Energy Corp. Expands International Thrust With Investments
In Argentine Natural Gas Distribution Companies
LOUISVILLE, Ky. - LG&E Energy today announced a major acquisition to further
its strategic international energy development, agreeing to acquire interests
in two Argentine natural gas distribution companies. The transaction marks
another major venture by LG&E Energy in Argentina, the largest producer of
natural gas in Latin America and among the fastest growing energy markets in
the world.
With this investment, LG&E Energy now has international energy businesses or
projects in Argentina, Spain and Canada.
LG&E Energy Corp. will buy a controlling interest in and manage Distribuidora
de Gas del Centro (Centro) and acquire a minority interest in Distribuidora de
Gas del Cuyana (Cuyana). The investments total $140 million. LG&E Energy's
global venture unit, LG&E International, will purchase the interest from
current shareholder Sideco Americana, S. A., an Argentine energy, engineering
and construction company, which will maintain an equity interest in both
companies. This is the company's second partnership with Sideco, following the
development of a 114-megawatt power plant in Tucuman Province, Argentina, in
1995.
"This transaction leverages our core competencies in energy management and
retail distribution," said Roger Hale, Chairman and Chief Executive Officer.
"This investment in a growing energy market creates value for our shareholders
and will produce a positive impact on earnings beginning in 1997.
"This latest acquisition in Argentina also extends our existing strategic
relationship with Sideco and further balances our energy businesses in a very
attractive energy market," said Hale. "Argentina offers a favorable business
environment because of its stable political climate, favorable currency policy
and economic development programs that attract new investment in its growing
economy."
Centro serves more than 340,000 customers in the provinces of Cordoba, Cata-
marca and La Rioja. Cuyana serves more than 280,000 customers in the provinces
of Mendoza, San Juan and San Luis. Combined, the companies generate over $270
million in sales annually and have more than $400 million in total assets.
Both companies, formerly part of government-owned Gas del Estado, were privat-
ized in late 1992.
Centro and Cuyana are currently controlled by separate holding companies, each
of which owns 51 percent of its respective distribution company. Under the
agreement, LG&E International will own shares directly in the distribution
companies and indirectly through the holding companies. The remainder of the
interests in both companies is held by employees and other parties.
The acquisition is subject to a shareholder 10-day right-of-first-refusal and
various regulatory approvals, and is expected to close in January 1997.
LG&E Energy Corp. (NYSE:LGE) is an energy services holding company with
headquarters in Louisville, Ky. The company owns and operates a diversified
portfolio of businesses engaged in power generation, power marketing and
development, energy trading and risk management, natural gas marketing, and
retail gas and electric distribution services. The company has offices,
operations and/or partnership projects throughout the United States as well as
Canada, Argentina and Spain.
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,
including but not limited to its Form 10-Q filed with the SEC on November 12,
1996, and its Form 8-K filed with the SEC on November 25, 1996, contain
additional information concerning factors that could cause actual results to
differ materially from those in the forward looking statements.
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