reliant to split itself into two publicly traded companies news briefs :
reliant energy plans to form two public companies
reliant energy said it plans to file with the texas public utility
commission a business separation plan under which it would divide into two
publicly traded companies to separate its unregulated businesses from its
regulated businesses .
the company plans an initial public offering of approximately 20 % of the
common stock of its unregulated operations late this year or early in 2001 ,
assuming market conditions remain favorable . the company expects the ipo to
be followed by a distribution to shareholders of the remaining stock of the
unregulated company within 12 months . the remaining businesses , which are
predominately regulated , will be structured as a holding company .
the unregulated company will own reliant energy ' s unregulated power
generation and related energy trading and marketing operations , its
unregulated retail businesses , which currently include energy ,
telecommunications and internet services , and the company ' s european
electric generating and trading / marketing operations . the plan also
contemplates that in 2004 the unregulated company will receive from the
regulated company cash equal to the market value of the regulated company ' s
interest in its texas regulated generation operations . in addition , the
unregulated company will have an option to purchase the regulated company ' s
interest in these operations at a price equal to the market value .
the regulated company will include reliant energy ' s electricity and natural
gas companies , which serve about four million customers in the u . s . and
include reliant energy hl & p / entex , reliant energy arkla , reliant energy
entex and reliant energy minnegasco . other operations in the entity will
include its u . s . interstate pipelines , its interests in latin america and ,
initially , its texas regulated generation .
reliant to split itself into two publicly traded companies
news briefs :
reliant energy plans to form two public companies
reliant energy said it plans to file with the texas public utility
commission a business separation plan under which it would divide into two
publicly traded companies to separate its unregulated businesses from its
regulated businesses .
the company plans an initial public offering of approximately 20 % of the
common stock of its unregulated operations late this year or early in 2001 ,
assuming market conditions remain favorable . the company expects the ipo to
be followed by a distribution to shareholders of the remaining stock of the
unregulated company within 12 months . the remaining businesses , which are
predominately regulated , will be structured as a holding company .
the unregulated company will own reliant energy ' s unregulated power
generation and related energy trading and marketing operations , its
unregulated retail businesses , which currently include energy ,
telecommunications and internet services , and the company ' s european
electric generating and trading / marketing operations . the plan also
contemplates that in 2004 the unregulated company will receive from the
regulated company cash equal to the market value of the regulated company ' s
interest in its texas regulated generation operations . in addition , the
unregulated company will have an option to purchase the regulated company ' s
interest in these operations at a price equal to the market value .
the regulated company will include reliant energy ' s electricity and natural
gas companies , which serve about four million customers in the u . s . and
include reliant energy hl & p / entex , reliant energy arkla , reliant energy
entex and reliant energy minnegasco . other operations in the entity will
include its u . s . interstate pipelines , its interests in latin america and ,
initially , its texas regulated generation .