Alliant Energy Enters Into an Agreement to Sell New Zealand Investments

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MADISON, Wis., Oct. 30 - Alliant Energy Corporation (NYSE: LNT) announced today that it has entered into an agreement to sell its interest in Alliant Energy New Zealand Limited (AENZ) for a purchase price of NZ$445 million (approximately US$290 million) to Infratil Limited. The purchase price is subject to certain adjustments through the closing date which is expected in December 2006. After payment of closing costs and the repayment of an intercompany loan with AENZ, Alliant Energy expects to realize net proceeds from the sale of approximately US$175 million. Alliant Energy plans to use these expected proceeds for general corporate purposes.

    AENZ, an indirectly wholly owned subsidiary of Alliant Energy Corporation, holds interests in two publicly traded New Zealand companies. AENZ owns a 23.77% interest in TrustPower Limited, New Zealand's fourth largest electricity retailer, and a 5.07% interest in Infratil Limited, an investor in infrastructure and utility assets.

    "Our investments in New Zealand have been extremely successful for the company," said Bill Harvey, Chairman, President and Chief Executive Officer of Alliant Energy. "As we've previously stated, an international presence is no longer consistent with our long-term business strategy. We are proud of our longstanding successful relationship with Infratil and are pleased that following a competitive process, Infratil agreed to acquire our interests in AENZ."

    As a result of this pending sale transaction, Alliant Energy expects to realize an after-tax gain of approximately $1.10-$1.20 per diluted share in the fourth quarter of 2006. Pursuant to the applicable accounting rules, the results from Alliant Energy's New Zealand investments, including the expected gain on sale, will continue to be reported in Alliant Energy's earnings from continuing operations.

    The sale is subject to certain shareowner and third party approvals. Alliant Energy worked with First New Zealand Capital, in affiliation with Credit Suisse, to manage the sale and was advised in legal matters by Buddle Findlay.

    Alliant Energy is an energy-services provider with subsidiaries serving approximately 1 million electric and over 420,000 natural gas customers. Providing its customers in the Midwest with regulated electric and natural gas service is the company's primary focus. Alliant Energy's utility subsidiaries are Interstate Power and Light and Wisconsin Power and Light companies. Alliant Energy, headquartered in Madison, Wis., is a Fortune 1000 company traded on the New York Stock Exchange under the symbol LNT. For more information, visit the company's Web site at http://www.alliantenergy.com .

    This press release includes forward-looking statements. These forward- looking statements can be identified as such because the statements include words such as "expects" or other words of similar import. Similarly, statements that describe future financial performance or plans or strategies are also forward-looking statements. Such statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those currently anticipated. Actual results could be affected by the following factors, among others: developments that adversely impact Alliant Energy's ability to complete its announced sale of AENZ on a timely basis and for anticipated proceeds; inability or failure of purchaser to deliver the proceeds at closing; governmental agency action which delays or prevents the transaction; inability to obtain all approvals required for closing; political, regulatory and economic conditions in New Zealand which could negatively affect the value of Alliant Energy's New Zealand investments; unexpected events affecting the trading markets of AENZ's investments; unexpected announced financial results of AENZ's investments; currency fluctuations; unanticipated changes in working capital; unexpected transaction costs or unexpected transaction liabilities; unanticipated taxation of the gross or net proceeds of the sale; and final determination as to the implications this transaction will have on Alliant Energy's financial statements pursuant to the applicable generally accepted accounting principles. These factors should be considered when evaluating the forward-looking statements and undue reliance should not be placed on such statements. Alliant Energy cannot provide any assurance that the assumptions referred to in the forward-looking statements or otherwise are accurate or will prove to be correct. Any assumptions that are inaccurate or do not prove to be correct could have a material adverse effect on Alliant Energy's ability to close the transaction and alter the accounting treatment and estimates for the transaction as stated in the forward-looking statements. The forward- looking statements included herein are made as of the date hereof and Alliant Energy undertakes no obligation to update publicly such statements to reflect subsequent events or circumstances.
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