Power Group Online Article |  | |
18 April 2007 -- Mirant Corporation said it has entered into a definitive purchase and sale agreement with a unit of Marubeni Corporation for the sale of its Caribbean business for $1.082 billion, which includes related debt of approximately $350 million, power purchase obligations of approximately $153 million and estimated working capital at closing. Net proceeds from the sale are expected to be around $565 million after payment of transaction costs estimated to be $14 million. Upon completion of the transaction, Mirant expects to realize a pre-tax gain of approximately $65 million for financial reporting purposes and a gain for tax reporting purposes of approximately $150 million. The transaction is expected to close by mid-2007 after the satisfaction of various conditions to closing.
Mirant's Caribbean business includes controlling interests in two integrated utilities: Jamaica Public Service Company of which Mirant owns 80 percent and Grand Bahama Power Company of which Mirant owns 55 percent. Mirant also owns 39 percent of PowerGen, the owner and operator of three power plants in Trinidad, 25 percent of Curacao Utilities Company 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.
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