March 31, 2003--Dynegy Inc. has agreed to sell its North American communications business to an affiliate of 360networks Corp., provider of data telecommunications services. Per the agreement, 360networks will acquire Dynegy's entire North American communications operations, consisting of a high-capacity broadband network spanning more than 16,000 route miles with access points in 44 US cities. Dynegy's customer base, fiber leases, co-location facilities, and other obligations and assets related to the U.S. communications network are included in the sale. The transaction, which is expected to close in April 2003, is subject to regulatory and other approvals, including lender consent. Financial terms were not disclosed.
The agreement with 360networks marks the final step in Dynegy's exit from communications, a business that was launched in August 2000. In January 2003, Dynegy sold its European communications business to a division of Klesch & Company.
"Today's announcement is significant for Dynegy and its stakeholders as it represents the last major divestiture of non-core assets in our self-restructuring, asserts Bruce A. Williamson, president and chief executive officer of Dynegy. "It leaves us with our three strong energy businesses in power generation, natural gas liquids and regulated energy delivery. Combined with the recent sale of our European communications business, the completion of this transaction will end our participation in the communications sector, enabling us to focus entirely on the energy business."
"We anticipate a seamless transition for existing customers and will continue to maintain the same high level of service that has characterized the operations of both 360networks and Dynegy," adds Jimmy Byrd, 360networks' president and chief operating officer.