Business Context and Reporting Period
This Form 6-K filing, dated October 21, 2002, announces the completion of the merger between National Grid Group plc and Lattice Group plc. The combined entity has been renamed National Grid Transco plc. The filing serves as an announcement to the London Stock Exchange regarding the effectiveness of the Lattice Scheme of Arrangement and the commencement of trading for the new shares.
Key Financial Metrics
The filing text does not provide specific financial metrics such as revenue, profit, cash flow, margins, debt, or liquidity figures. The document is a corporate announcement focused on the structural completion of the merger rather than a financial results report.
Material Changes
- Corporate Structure: National Grid Group plc has become the holding company for the enlarged group and changed its name to National Grid Transco plc.
- Share Exchange: Lattice shareholders received 0.375 of a new National Grid Transco share for each Lattice share held as of October 18, 2002.
- Trading Status: Lattice shares were delisted from the Official List. New National Grid Transco shares began trading on the London Stock Exchange under the symbol "NGT".
- ADS Trading: American Depositary Shares (ADSs) continue to trade on the New York Stock Exchange under the symbol "NGG".
Guidance, Outlook, and Management Commentary
Management expressed confidence in the merger's ability to create value through integration savings and the implementation of best practices. Key strategic points include:
- Operational Goals: The merger aims to improve security, reliability, and efficiency in the UK energy delivery sector.
- Expansion Strategy: The enlarged group intends to leverage expanded skills and resources to enhance its expansion strategy in the Northeast of the US.
- Integration Status: The new head office is open for business, and the integration process is reported to be proceeding smoothly.
Board Changes: The new Board of Directors was appointed effective October 21, 2002. Sir John Parker serves as Chairman, and Roger Urwin as Chief Executive. Several directors from the previous National Grid and Lattice boards retired or did not join the new board.
Important Facts for Investors to Verify
- Confirmation of the share exchange ratio (0.375 new shares per Lattice share) and the receipt of new share certificates or CREST credits.
- Verification of the new trading symbols: "NGT" on the London Stock Exchange and "NGG" on the New York Stock Exchange.
- Timeline for the receipt of cash proceeds for fractional share entitlements (expected by November 4, 2002).
- Details regarding the specific integration savings and US expansion plans mentioned by management, which are not quantified in this filing.