LONDON/FRANKFURT (Reuters) – The sale of British power utility Western Power Distribution (WPD) faces delays to at least the first quarter of 2021, partly due to uncertainty over whether Britain will leave the European Union without a trade deal, sources close to the matter said.
Current owner U.S. utility PPL Corp in August launched the sale of WPD, which has a regulatory asset value of 7.7 billion pounds ($10.1 billion) with the help of U.S. investment bank JP Morgan , to focus on its U.S. operations.
Based on its earnings before interest, taxes, depreciation and amortization (EBITDA) at 1.25 billion pounds ($1.67 billion) for the financial year ended in March, WPD could fetch a valuation of up to 12 billion pounds.
Despite PPL’s gauging the interest of European utilities and investment funds, the power group has attracted just a small number of potential bidders, the sources said.
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