Mirant hires bank for Philippine assets-sources
Monday, February 20, 2006
SINGAPORE/HONG KONG, Feb 17 (Reuters) - U.S. power producer Mirant Corp. (MIR.N: Quote, Profile, Research), which emerged from bankruptcy in January, has hired Credit Suisse (CSGN.VX: Quote, Profile, Research) to explore options on its multi-billion dollar power assets in the Philippines, including a sale, sources familiar with the matter said on Friday.
A sale of Mirant's 2,298-megawatt plants in the southeast Asian nation would be the last major auction of power assets by a U.S. utility in the region. A sale is set to generate strong investor interest because of the lucrative long-term power purchase agreements it holds.
"We expect they will move fairly fast. There are a lot of people interested in the assets," said one source, who spoke on condition of anonymity.
Another source familiar with the process told Reuters that other options on the assets could include "financing" instead of a sale. The source declined to elaborate.
A third source said a decision was expected to be made in about a month.
Mirant, the largest foreign investor in the Philippines, was not immediately available for comment. Credit Suisse spokeswoman in Hong Kong said she could not comment.
Mirant, whose Philippine portfolio carries an estimated enterprise value of around $3 billion, is expected by industry sources to focus on its home market. Many of its U.S. counterparts such as El Paso (EP.N: Quote, Profile, Research) and Edison Mission Energy have sold off their offshore assets since the 2001 Enron collapse.
posted by philpower @ 7:43 AM,
