Kansas City, Mo. UtiliCorp United is proceeding with a partial spin-off of its Aquila Energy Corporation subsidiary, officials announced Thursday.
The Securities and Exchange Commission has approved an initial public offering of stock of about 20 percent of Aquila shares. UtiliCorp said it plans to spin off the remaining shares of Aquila later this year in a tax-free distribution to UtiliCorp stockholders.
The offering price is expected to be between $21 and $23 per share.
Ethan Hirsh, a UtiliCorp spokesman, said the IPO is expected to proceed immediately and be completed this month.
The Kansas City, Mo.-based Aquila is a risk management company and major wholesaler of electricity, natural gas and other commodities. It is one of the largest risk management companies and wholesale marketers of energy in North America, and it also has a presence in the United Kingdom, Spain, Germany and Scandinavia. Sales in 2000 were $26.4 billion.
In December, the company said proceeds from the stock offering would be used by Aquila to repay what it owes UtiliCorp and increase Aquila's capital financing flexibility by allowing it to independently access capital markets.