United Utilities completes sale of its electricity distribution assets

19 December 2007

Further to the announcement on 23 November 2007, United Utilities PLC today announces that it has completed the sale of its electricity distribution assets to North West Electricity Networks Limited for a total enterprise value of £1,782 million.

As referred to in the half yearly results presentation on 29 November 2007, United Utilities intends to return the net equity proceeds of approximately £1,050 million*, as part of a larger return of £1.5 billion**, to its shareholders in the next financial year.

United Utilities' contacts

For further information please contact:

Philip Green, Chief Executive +44 (0) 1925 237000
Tim Weller, Chief Financial Officer +44 (0) 1925 237000

Gaynor Kenyon, Communications Director +44 (0) 7753 622282
Darren Jameson, Head of Investor Relations +44 (0) 7733 127707
 
Alan Brown / Anthony Parsons, Deutsche Bank*** +44 (0) 20 7545 8000
 
Dominic Fry / Peter Hewer, Tulchan Communications +44 (0) 20 7353 4200

*Represents gross cash consideration of £1,140 million less United Utilities' group debt apportioned to the electricity distribution assets and transaction costs. 

** The intention is to return the £1,050 million net equity proceeds to shareholders along with a further £450 million to create a more efficient capital structure, resulting in a total return to shareholders of £1.5 billion.

*** Deutsche Bank AG, London Branch ("Deutsche Bank") is acting as sole financial adviser to United Utilities.

Notes

In the year to 31 March 2007, United Utilities Electricity Limited generated revenue of £315.6 million and reported an operating profit of £176.1 million and profit before taxation of £144.9 million.  The value of the gross assets which are the subject of the transaction was £2,255.3 million as at 31 March 2007.

North West Electricity Networks Limited has been jointly established by Colonial First State Global Asset Management ("CFS") and the JPMorgan Infrastructure Investments Fund ("JPM IIF") to effect the acquisition of United Utilities' electricity distribution assets.  CFS and JPM IIF have each provided 50% of the equity in relation to the acquisition.

CFS is the asset management division of the Commonwealth Bank of Australia.  CFS currently manages in excess of US$141 billion of investments across a broad spectrum of traditional and alternative asset classes including managing in excess of US$2.5 billion of equity invested in infrastructure assets in the utility and transport sectors in Australia and Europe.

JPM IIF is a fund advised by JPMorgan Asset Management, and is focused exclusively on the infrastructure sector.  The fund holds investments in North America and Europe.