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CP&L/Florida Progress Receive Final Approval

CP&L/Florida Progress Receive Final Approval

Carolina Power and Light Energy (CP&L) realized its goal last week of becoming one of the 10 largest energy companies in the nation as its acquisition of Florida Progress Corp. (FPC) received the final regulatory approval it needed from the Securities and Exchange Commission.

The $5.3 billion acquisition of Florida Power's parent company was first announced in August of 1999 and is still on track to meet its pre-set closing date of Nov. 30 (see NGI, Aug. 30, 1999).

"We are creating a new super-regional energy company poised for success in the rapidly changing marketplace," said William Cavanaugh, CEO of CP&L Energy. "Our increased size and assets provide us with a platform for growth and the ability to compete in any business environment." Cavanaugh will continue to be chairman, CEO and president of the combined company.

Florida Progress shareholders have the option of receiving $54 in cash per FPC share or CP&L common stock, plus one contingent value obligation (CVO) related to cash flows from synthetic fuel plants. FPC shareholders' right to choose is subject to proration if the elections exceed 65% cash or 35% stock.

Based on a 20-day trading period for CP&L common stock, the exchange ratio for the transaction will be 1.3473 shares of CP&L common stock for each share of FPC stock to shareholders who elect the stock swap option. FPC shareholders had until 5 p.m. EST yesterday to choose an option.

"With more than 19,000 MW of generation capacity and 2.8 million customers in the Carolinas and Florida, this new company will be a leader in providing reliable, competitively priced energy in the Southeast," said Richard Korpan, CEO of Florida Progress. "The new company will be focused on exceeding our customers' and our shareholders' expectations."

CP&L said it has set a date of Dec. 4 to announce the new name for the holding company, along with a new New York Stock Exchange ticker symbol.

In related news. FPC announced yesterday that based on the Nov. 30, 2000, closing date for the combination with CP&L Energy, shareholders will be paid a prorated quarterly cash dividend of $0.518 per share. The dividend will be issued on Dec. 20, to shareholders of record on Nov. 29.

Alex Steis

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