Mirant sells Sual Plant
SUAL — Mirant Corporation’s sale of its Philippine business, particularly the Sual Coal-powered Plant has been consummated.
In an official statement, it said it has entered into a definitive purchase and sale agreement with a consortium of The Tokyo Electric Power Company, Incorporated and Marubeni Corporation for the sale of its Philippine business for a purchase price of $3.424 billion plus working capital.
The transaction is expected to close in the second quarter of 2007 after the satisfaction of certain conditions, including the Sual plant being operational.
“The Philippines is a good environment for foreign investment and has been a wonderful place for us to do business,” said Edward R. Muller, chairman and chief executive officer of Mirant Corporation and he wished “the Tokyo Electric-Marubeni consortium and the Philippine people great success.”
Mirant said after the payment of related debt (estimated to be $642 million at the closing), the net proceeds are expected to be $3.152 billion.
It’s other anticipated taxable income for the year will depend on whether Mirant elects to be treated under section 382(l)(5) or section 382(l)(6) of the Internal Revenue Code, an election that Mirant must make not later than September 17, 2007. Although the ultimate decision on this election will depend on Mirant’s anticipated overall 2007 tax position, it is more likely than not that Mirant will elect to determine its NOLs under section 382(l)(5). Upon completion of the transaction, Mirant expects to record a pre-tax book gain of approximately $2.2 billion.
Mirant is a competitive energy company that produces and sells electricity in the United States, the Caribbean, and the Philippines.
Mirant owns or leases approximately17,300 megawatts of electric generating capacity globally. The company operates an asset management and energy marketing organization from its headquarters in Atlanta. – EVA
Share your Comments or Reactions
Powered by Facebook Comments
