PPL Corp Divests U.K. Utility Business; Plans to Reduce Debt with Proceeds
Market News

PPL Corp Divests U.K. Utility Business; Plans to Reduce Debt with Proceeds

PPL Corporation (PPL) has completed the divestiture of Western Power Distribution (WPD), its U.K. utility business, to National Grid for about $10.7 billion in cash.

The U.S.-based utility holding company has set aside about $6.6 billion to build its balance sheet position and focus more on U.S. operations. The company also plans to reduce its outstanding debt by about $3 billion.

Notably, PPL Corporation is also making progress to acquire Narragansett Electric Company from National Grid for about $3.8 billion. The deal is likely to close in March 2022. (See PPL Corp. stock analysis on TipRanks)

President and CEO of PPL Corporation Vincent Sorgi said, “The sale of WPD and the acquisition of Narragansett Electric will better position PPL for long-term growth and success. The move will give us the financial flexibility to invest in sustainable energy solutions.”

In May, RBC Capital analyst Shelby Tucker maintained a Hold rating and a price target of $30 (2.53% upside potential) on the stock. Shelby anticipates PPL Corporation to break even in the second quarter of 2021.

The rest of the Street is cautiously optimistic on the stock with a Moderate Buy consensus rating based on 2 Buys and 5 Holds. The average analyst PPL Corp. price target of $32.33 implies 10.49% upside potential from current levels. Shares have jumped 4.8% over the past six months.

TipRanks data shows that financial blogger opinions are 90% Bullish on PPL compared to the sector average of 72%.

Related News:
Facebook Acquires Virtual Reality Company BigBox VR
BlackRock Approved to Start First Wholly Owned Mutual Fund Business in China: Report
California Water Service Arm to Acquire Assets of HOH Utilities Company; Shares Rise 1.7%

Tired of arriving late to the Big Returns Party?​
Most investors don’t have major gainers like TSLA or NVDA on their radar from the start.
The profusion of opinions on social media and financial blogs makes it impossible to distinguish between real growth potential and pure hype.
​​For the past decade, we have developed and perfected technology designed to help private investors, just like you, find the best opportunities, with the greatest upside potential, in any financial climate.​
Learn More

Trending

Name
Price
Price Change
S&P 500
Dow Jones
Nasdaq 100

Trending

Name
Price
Price Change
S&P 500
Dow Jones
Nasdaq 100
RUT
Russell 2000
TNX
10-Yr-Bond
Bitcoin

Popular Articles