Mirant
Corp sells Caribbean business
Trinidad Guardian
Port
Spain
Petroleumworldtt.com
04 22 07
Mirant Corporation, a 39 per cent shareholder in
the PowerGeneration Company of T&T, yesterday
announced a deal to sell its PowerGen shareholding
along with its other Caribbean businesses to a
subsidiary of Japan’s Marubeni Corporation
for nearly US$1.1 billion.
Atlanta-based Mirant said it expects to get about
US $565 million from the sale, following payment
of transaction costs. When the deal closes by mid-2007,
Mirant expects to realise a pre-tax gain of US$65
million for financial reporting purposes and a
gain for tax reporting purposes of US$150 million.
As
mentioned, Mirant’s Caribbean business
includes 39 per cent of T&T’s PowerGen,
the owner and operator of three gas-fired power
plants in Trinidad, the 237-megawatt Penal facility,
the 630-megawatt Point Lisas site and a 290-megawatt
plant in Port-of-Spain all having a total capacity
of 451 megawatts.
Mirant’s Caribbean holdings also includes
controlling interests in two integrated utilities—Jamaica
Public Service Co, of which Mirant owns 80 per
cent, and Grand Bahama Power Co, of which Mirant
owns 55 per cent, 25 per cent of Curacao Utilities
Co, which provides electricity and other utility
services, and a $40 million convertible preferred
equity interest in Aqualectra, an integrated water
and electric company in Curacao.
“We have valued doing business in Curacao,
Grand Bahama, Jamaica and Trinidad,” said
Edward R Muller, chairman and CEO of Mirant. “We
wish the people of all four countries and Marubeni
Corporation great success.”
Analysts
characterised the sale as part of mirant’s
decision to refocus on its US operation. Observers
noted that Mirant was also investigating strategic
alternatives to enhance shareholder value.
An outright sale of the company was one of the
options for achieving this that was being considered
by Mirant. Another option was returning to shareholders
excess cash from the divestiture of its Caribbean
and Philippine businesses, and six US natural gas-fired
plants, and yet another was continuing to operate
its retained businesses.
Mirant had net income of US$1.9 billion on US$3.1
billion in revenue in 2006, compared with a net
loss of US$1.3 billion on US$4.2 billion in revenue
in 2005.
The
company’s Caribbean assets were valued
at US$579 million; the power purchase agreements
at US$153 million; and Mirant’s long-term
debt obligations at US$350 million. (See pg 27)
Trinidad
Guardian
Thursday 19th April, 2007
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©2007 Trinidad Guardian. All Rights Reserved.
