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TUCSON, Ariz., Mar 28, 2006 -- BUSINESS WIRE
UniSource Energy Corp. (NYSE: UNS) has agreed to sell Global Solar Energy to Solon AG, a German producer of photovoltaic modules, and a European financial investor. "This agreement gives us a reasonable exit from Global Solar while leaving us an opportunity to capitalize on the company's future success," said James S. Pignatelli, chairman, president and CEO of UniSource Energy. "It also allows us to focus our resources and attention more fully on our core utility operations." Global Solar was established in 1996 as a joint venture overseen by Millennium Energy Holdings, a UniSource Energy subsidiary that holds the company's unregulated energy-related investments. The sale of Global Solar is part of UniSource Energy's ongoing plan to scale back Millennium's involvement in actively managed investments. The sale is expected to close by mid-April 2006, subject to certain conditions contained in the agreement. In the event that the sales agreement is breached, the breaching party will pay a break-up fee of $800,000. UniSource Energy expects to record approximately $1 million of after-tax losses related to the discontinued operations and disposal of Global Solar. Coady Diemar Partners represented Millennium Energy in the transaction. UniSource Energy is the parent company of Tucson Electric Power Co., which serves more than 385,000 customers in the Tucson metropolitan area, and UniSource Energy Services, which provides natural gas and electric service to approximately 228,000 customers across Arizona. For more information about UniSource Energy and its subsidiaries, visit uns.com. Certain statements included in this news release are intended as "forward-looking statements." These statements include assumptions, expectations, predictions, intentions or beliefs about future events regarding the proposed sale of Global Solar. UniSource Energy cautions that actual future results may vary materially from those expected or implied in any forward-looking statements. The key factor that could cause actual results to vary materially from those expressed or implied is the satisfaction of conditions contained within the sales agreement. There can be no assurance that such conditions will be satisfied or that such transaction will be consummated. SOURCE: UniSource Energy Corp. News Provided By |
