American Electric Power has sold its UK retail subsidiary Seeboard to London Electricity Group for $2.17 billion. The company was put up for sale earlier this year when the AEP decided that it needed to reduce its debt and focus on the US market.
London Electricity is owned by French state utility EdF, one of four companies, (the others being Powergen, Scottish and Southern Energy and TXU) that bid for control of Seeboard, with 1.8 million customers the smallest of eight UK regional companies.
LEG has paid $975 million in cash and assumed $1.05 billion in debt as well as assuming $146 million in obligations related to a power purchase agreement with Medway Power, a 680 MW gas fired power station in Kent. The sale still requires approval of the EU, but AEP expect completion by around end-July.
The acquisition has hoisted EdF above the 5 million mark in terms of UK customers..
