npower sells off gas and electricity businesses for £218m
MIDLANDS-based power company npower has taken further steps to improve its financial situation by agreeing to sell two subsidiary companies to Telecom Plus for £218m.
London-based utility services provider Telecom Plus is acquiring Electricity Plus Supply and Gas Plus Supply.
As part of the deal, Telecom Plus will be able to take advantage of a new 20 year energy supply agreement with npower which should substantially increase its energy margins.
Telecom Plus will pay £196.5m on completion of the acquisition and £21.5m is to be deferred for three years.
Charles Wigoder, executive chairman of Telecom Plus, said: “This is a transformational deal for the company, delivering significant earnings enhancement, a revised and improved 20 year supply agreement with npower and the opportunity for us to provide even more competitive energy prices to our customers in future.”
Paul Massara, CEO of RWE npower, said: “Both Electricity Plus and Gas Plus have expanded substantially over recent years and we are pleased to be able to provide long-term support for an entrant which now has more than 770,000 customer accounts nationwide.”
Worcester-based npower – which also has regional operations in Solihull and Oldbury – recently announced it is considering axing more than 6,700 jobs across Europe over the next two years as it looks to claw back profits.
npower is owned by the German energy giant RWE.
