PPL Completes Sale of Telecommunication Subsidiary
PPL Corp. (Allentown, Pennsylvania) has completed the sale of its PPL Telcom subsidiary to Zayo Bandwidth Inc. of Louisville, Colo.
Zayo, a wholly owned subsidiary of Communications Infrastructure Investments, LLC, has acquired PPL Telcom for an enterprise value of $60 million, which includes the assumption of approximately $10 million of debt. PPL realized approximately $47 million in net proceeds from the transaction.
As previously reported, PPL recorded special after-tax charges in the first and second quarters of 2007 totaling $20 million, or 5 cents per share, related to the sale of PPL Telcom. PPL expects to record an additional special item charge of approximately 1 cent per share in the third quarter of 2007 related to the sale. The company said the PPL Telcom sale will have no effect on PPL Corporation's current 2007 forecast of earnings from ongoing operations.
UBS Investment Bank acted as PPL's financial advisor on the sale of PPL Telcom.
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