Mirant:
Sale of Caribbean businesses to close by mid-year
By Sascha Wilson
Trinidad Guardian
Port
Spain
Petroleumworldtt.com
05 13 07
US energy company Mirant expects to close the
sale of its Caribbean business by mid-year, company
CEO Ed Muller said today in a webcast.
Mirant last month announced it had entered into
a definitive purchase-and-sale agreement with a
subsidiary of Japan’s Marubeni to sell its
Caribbean assets for US$1.08 billion. The sale
is part of a strategic plan to improve shareholder
value.
Mirant expects net proceeds from the sale to reach
US$565 million after payment of transaction costs
estimated at US$14 million.
The
US company’s net ownership interest
in Caribbean businesses is 1.05GW, including controlling
interests in Jamaican power utility JPS (80 per
cent) and Grand Bahama Power (55 per cent).
Mirant
also owns a 39 percent interest in the Power
Generation Company of Trinidad & Tobago
(PowerGen) and 25 per cent in Curaçao Utilities.
First
quarter operating revenue from Mirant’s
Caribbean operations reached US$187 million compared
to US$188 million in the first quarter of 2006,
according to a company filing with the US Securities & Exchange
Commission. Net profit from these operations in
the period rose 35.7 per cent to US$19 million
on lower costs.
Trinidad
Guardian
Friday 11th May, 2007
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