Aquila to sell British utility to Powergen

? Aquila Inc. and FirstEnergy Corp. have reached a new deal to sell a British utility — this time to Britain’s Powergen.

A previous deal to sell Aquila Sterling Ltd., the owner of Midlands Electricity, to Scottish and Southern Energy PLC, based in Perth, Scotland, fell apart last month when bondholders did not agree to take 86 percent of their bonds’ value.

Kansas City, Mo.-based Aquila announced a new deal Tuesday to sell Aquila Sterling to a subsidiary of Powergen for about $60.1 million in cash. The value of the deal, including debt, is about $1.9 billion.

Aquila owns 79.9 percent of Aquila Sterling, and Akron, Ohio-based FirstEnergy Corp. owns 20.1 percent. Aquila said it expected $51.9 million in gross proceeds from the sale, before transaction fees and costs.

The new deal also is subject to bondholders’ approval. This time, they must agree to sell their bonds to an affiliate of Powergen for 95.8 percent of their value.