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27 April 2006 - The owners of a 360 MW coal fired power plant in Wales are to sell their interest for a figure over four times that which they paid for it just two years ago, in what is the latest deal to signal a burgeoning market for UK coal stations.
The Rutland fund is in advanced talks with a number of consortia interested in acquiring the 360 MW Uskmouth power station near Newport in South Wales. The coal fired facility has three independent generation units and a 1250 MW connection to the national grid.
A group led by Deutsche Bank are believed to be the frontrunners in an auction process that should be completed in the near future. The Rutland fund expects a minimum price of £100m ($178m) for a share that they paid £25m for in July 2004. Though it is thought that the eventual price is likely to be around £120m or $214m.
If the Deutsche Bank consortium is successful with its bid for Uskmouth it will acquire control of a plant that underwent significant refurbishment in 2000. The modernization process extended the plant's life by 25 years and made it compliant with the latest emissions requirements.
The Uskmouth plant was previously owned by the US-based utility AES. Following a sharp drop in British power prices in 2003 AES decided to sell its interest in the plant along with the 4000 MW Drax coal fired power plant in Yorkshire. The current owners of Drax, Europe's largest coal plant, received a bid of £2.3bn for its stake late last year, but instead chose to proceed with public listing.
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