Southern Company to sell Florida assets for $6.4bn

22 May 2018 (Last Updated July 27th, 2018 14:43)

US-based gas and electric utility Southern Company has signed agreements to sell its Florida assets to NextEra Energy for approximately $6.4bn.

US-based gas and electric utility Southern Company has signed agreements to sell its Florida assets to NextEra Energy for approximately $6.4bn.

The sale includes Gulf Power Company, Florida City Gas and the entities holding Southern Power’s interests in Plant Oleander and Plant Stanton.

Net of debt, the deal reflects an equity value of about $5.075bn.

NextEra is a clean energy company that operates approximately 46,790MW of net generating capacity.

“This sale provides Southern Company with the opportunity to build the future of energy as one of America’s premier energy companies.”

Under the terms of the deal, Gulf Power and Florida City Gas will continue to focus on their customer-focused business models, while Southern Company intends to use the proceeds from these transactions to reduce debt and improve its balance sheet.

Completion of each transaction is conditioned upon the expiration or termination of any applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

The Gulf Power and Plant Oleander and Plant Stanton transactions are also subject to the approval of the Federal Energy Regulatory Commission and the Federal Communications Commission.

They are expected to be completed by the first half of next year, while the Florida City Gas deal is slated for completion during the third quarter of this year.

Southern Company chairman, president and CEO Thomas Fanning said: “This sale provides Southern Company with the opportunity to deliver great value to our organisation, bolster our financial profile and continue to build the future of energy as one of America’s premier energy companies.

“These Florida businesses are being sold at a price that provides substantial value to our stockholders while entrusting the customers of these exceptional franchises to a high-quality utility company that has a well-established presence in the state.”