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 (Date of earliest event reported): June 15, 2000
PPL Corporation
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(Exact Name of Registrant as Specified in Its Charter)
Pennsylvania 1-11459 23-2758192
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State or other jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification No.)
Two North Ninth Street, Allentown, Pennsylvania 18101-1179
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(Address of principal executive offices)
Registrant's Telephone Number, including Area Code: (610) 774-5151
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(Former name or former address, if changed since last report)
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ITEM 5. OTHER EVENTS
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PPL Global, Inc., the development and international operating
subsidiary of PPL Corporation, has won an international tender to purchase an
84.7 percent interest in Companhia Energetica do Maranhao (CEMAR), an
electricity distribution company in Brazil. The agreement is part of PPL's
integrated strategy to acquire and operate high-growth electricity delivery
businesses in Latin America and select regions around the world.
CEMAR serves about 977,000 customers in the northeast Brazilian state
of Maranhao. The company has about 2,000 employees, and sold about 2,293
gigawatt-hours of electricity during 1999.
The acquisition price was approximately R$523 million, equivalent to
about US$289 million based on current exchange rates. PPL Global is acquiring
the interest in CEMAR from the State of Maranhao, the Brazilian development bank
BNDESPAR, and Eletrobras, a Brazilian generation company.
The acquisition is expected to be accretive to earnings beginning in
2002. It will be financed initially with short-term debt. Over the longer term,
plans are to finance the transaction with a combination of long-term debt and
convertible securities. The transaction is expected to close in about one week.
The acquisition will bring PPL Global's total investments or
commitments to $2.5 billion, including investments and commitments of about $971
million in Latin America. With the addition of CEMAR's 977,000 customers, PPL
will serve more than 3 million electricity distribution customers in Latin
America and the United Kingdom.
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Certain statements contained in this report, including statements with respect
to future earnings, are "forward-looking statements" within the meaning of the
federal securities laws. Although PPL Corporation believes that the expectations
and assumptions reflected in these forward-looking statements are reasonable,
these statements involve a number of risks and uncertainties, and actual results
may differ materially from the results discussed in the statements. The
following are among the important factors that could cause actual results to
differ materially from the forward-looking statements: market demand and prices
for energy, capacity and fuel; weather variations affecting customer energy
usage; competition in retail and wholesale power markets; the effect of any
business or industry restructuring; the profitability and liquidity of PPL
Corporation and its subsidiaries; new accounting requirements or new
interpretations or applications of existing requirements; operating performance
of plants and other facilities; environmental conditions and requirements;
system conditions and operating costs; performance of new ventures; political,
regulatory or economic conditions in countries where PPL Corporation or its
subsidiaries conduct business; capital market conditions; share price
performance; foreign exchange rates; and the commitments and liabilities of PPL
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Corporation and its subsidiaries. Any such forward-looking statements should be
considered in light of such factors and in conjunction with PPL Corporation's
Form 10-K and other reports on file with the Securities and Exchange Commission.
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SIGNATURE
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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 hereunto duly authorized.
PPL CORPORATION
By: /s/ James E. Abel
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James E. Abel
Vice President-Finance and Treasurer
Dated: June 15, 2000
