CHICAGO, April 21 -- Exelon Corp. announced today that certain of its subsidiaries have entered into an agreement to sell their partnership interests in PECO TelCove to TelCove, their partner, for $49 million. The sale price covers Exelon's interests in the partnership, certain fiber network assets and the settlement of existing claims between the parties.
Exelon distributes electricity to approximately 5.1 million customers in northern Illinois and Pennsylvania and gas to more than 460,000 customers in the Philadelphia area. PECO TelCove is a competitive local exchange carrier operating in Southeastern Pennsylvania. It provides telecommunications services (local, long distance and data services) to businesses and institutions through its own fiber network.
TelCove, founded in 1991 and based in Southpointe, Pa., provides companies and carriers in the Eeastern US and carriers with Internet, data and voice solutions through metropolitan and intercity fiber-optic networks. The company announced last week its transition to a new board of directors in the wake of its recent emergence from Chapter 11 bankruptcy and that TelCove president and CEO Robert Guth was named chairman.
On March 24, TelCove and Adelphia Communications Corp. said the US Bankruptcy Court approved settlements that resolve all of the issues and claims between the companies.
George Gilmore, senior vice president of Exelon and president of Exelon Enterprise, said, "This divestiture supports Exelon's corporate strategy to focus on our core integrated utility businesses. Exelon also believes this transaction is in the best interest of PECO TelCove. TelCove will provide the business with the support needed to achieve its growth objectives."
The agreement is subject to customary closing conditions and approval. The transaction is expected to close in the second quarter of this year.
For more information, visit: www.telcove.com