Exhibit 99
News
News Media Contact:
Marc Rice, (404) 223-0230
[email protected]
http://www.southernco.com
Investor Relations Contact:
Glen Kundert, (404) 506-5135
[email protected]
Nov. 27, 2000
Southern Company announces target date for spinoff of
Southern Energy subsidiary
ATLANTA - Southern Company (NYSE:SO) Chairman and Chief Executive Officer A.W.
"Bill" Dahlberg said today the company's management intends to seek approval
from the Board of Directors for a complete spinoff of Southern Energy (NYSE:SOE)
to take place on or about April 2, 2001.
Southern Company previously announced that it intended to spin off its
remaining ownership of Southern Energy to Southern Company shareholders between
April and September 2001. Southern Energy is a global independent power producer
and a leading energy marketing and risk-management company with extensive
operations in North America, Europe and Asia.
Southern Energy closed an initial public offering of its common stock
on Oct. 2. Total gross proceeds to Southern Energy from the initial public
offering and a concurrent securities offering were $1.8 billion.
Southern Company currently holds 272 million shares, or 80.3 percent,
of the outstanding shares of Southern Energy. Some 66.7 million shares -- or
19.7 percent of Southern Energy -- are owned by public investors. In total there
are 338.7 million Southern Energy shares outstanding.
The spinoff must be approved by Southern Company's Board of Directors.
The principal factors that the Board will consider in determining whether and
when to complete the spinoff include: general market conditions and the relative
market prices of Southern Energy's common stock and of Southern Company's common
stock; the receipt from the IRS, if required, of a supplemental ruling that the
transaction will be tax-free to Southern Company and its shareholders and that
the transaction will qualify as a tax-free distribution for U.S. tax purposes;
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NEWS RELEASE 2 Nov. 27, 2000
receipt of necessary regulatory orders with terms and conditions acceptable to
Southern Company; the absence of any court orders, regulations, adverse
regulatory action or contractual restrictions prohibiting or restricting the
completion of the spinoff; other conditions affecting Southern Energy or
Southern Company; and certain modification of lending agreements that a number
of banks have in place with Southern Energy.
Southern Company is an international energy company that operates more
than 48,000 megawatts of electric generating capacity worldwide. Southern
Company has operations in 12 countries on five continents. Based in Atlanta,
Southern Company is the parent firm of Alabama Power, Georgia Power, Gulf Power,
Mississippi Power, Savannah Electric and Southern Energy. Southern Company also
provides energy-related marketing, risk-management and technical services in the
United States and Europe and offers Southern LINC wireless telecommunications.
Forward-looking Statements
Note: Certain information contained in this release is forward-looking
information based on current expectation and plans that involve risks and
uncertainties. Forward-looking information includes, among other things,
statements concerning the distribution of Southern Energy shares and the timing
of that distribution.
The following factors, in addition to those discussed in the company's Annual
Report on Form 10-K for the year ended December 31, 1999, and subsequent
securities filings, could cause results to differ materially from management
expectations as suggested by such forward-looking information: factors related
to the spinoff and establishment of the spinoff date as discussed above; the
impact of recent and future federal and state regulatory change, including
legislative and regulatory initiatives regarding deregulation and restructuring
of the electric utility industry and also changes in environmental and other
laws and regulations to which Southern Company and its subsidiaries are subject,
as well as changes in application of existing such laws; current and future
litigation, including the EPA civil action against Georgia Power and potentially
other of our subsidiaries and the diversity litigation against certain of our
subsidiaries; the effects of increased competition in the markets in which
Southern Company's subsidiaries operate; the impact of fluctuations in commodity
prices, interest rates and customer demand; internal restructuring or other
restructuring options that may be pursued; potential business strategies,
including acquisitions or dispositions of assets or businesses, which cannot be
assured to be completed or beneficial to the company; the effects of, and
changes in, economic conditions in the areas in which Southern Company's
subsidiaries operate; financial market conditions and the results of financing
efforts; the timing and acceptance of the company's new product and service
offerings; the ability of Southern Company to obtain additional generating
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NEWS RELEASE 3 Nov. 27, 2000
capacity at competitive prices; weather and other natural phenomena; and the
ability of Southern Company to meet the conditions for the spinoff of Southern
Energy, which include regulatory and other approvals.
The reader is cautioned not to put undue reliance on this
forward-looking information, which is not a guarantee of future performance and
is subject to a number of uncertainties and other factors, many of which are
outside the control of Southern Company.
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