PPL - PPL sells U.K. utility unit to National Grid for £7.8B buys Narragansett for $3.8B

PPL Corp. (PPL) agrees to sell its U.K. utility business, Western Power Distribution, to National Grid (NGG) for £7.8B ($10.9B), while separately agreeing to acquire National Grid's Rhode Island utility business, Narragansett Electric Co., for $3.8B.PPL +1.6% pre-market; NGG +0.5%.PPL's sale of WPD is an all-cash deal valued at £14.4B, including the assumption of £6.6B of debt, and is expected to result in ~$10.2B of net cash proceeds.PPL's acquisition of Narragansett is valued at $5.3B, including the assumption of $1.5B of debt; the company plans to use part of the proceeds from WPD sale to finance the acquisition."The strategic repositioning will transform PPL into a high-growth, purely U.S.-focused energy company with a strong balance sheet," the company says.PPL had announced plans last August to sell WPD, which comprises four distribution network operators serving 7.9M customers in central and southwest England and south Wales.

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PPL sells U.K. utility unit to National Grid for £7.8B, buys Narragansett for $3.8B