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14 October 2004 - BTU Group is to purchase from PSEG Global their 50 per cent equity interest in Hong Kong based Meiya Power Company Limited (MPC).
It is the second such transaction this year between BTU, the asset acquirer and project developer in the mid and downstream segments of the energy value chain, and PSEG, the owner and operator of international power plants and electrical distribution companies.
The $220m sale is expected to be earnings neutral for PSEG on an after-tax basis and is due to close within 60 days subject to customary closing conditions and approvals.
Bob Dougherty, president of PSEG Energy Holdings, Global's immediate parent company said, "The sale of MPC is in line with our stated long-term goal of selectively and strategically selling some of our investments when a sale is in the best interests of PSEG's shareholders."
PSEG Global indicated the proceeds from the sale of MPC, coupled with funds on hand and future operating cash flows will be used to continue to reduce PSEG Energy Holdings debt and to return additional capital to PSEG.
MPC are in a key position to help realise BTU's plans. Wael Al-Mazeedi, chief executive officer of the BTU Group said, "With its growth potential, strong management team and proven track record, MPC will serve as a platform for realising BTU's strategy to capitalise on the growth in energy demand in Asia."
BTU Group's shareholders include leading publicly traded companies and institutional investors in the GCC countries. The group was established in 2001 in order to capitalize on the deregulation and privatisation of the energy and energy related industries in selected Middle East and North African countries.
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