TEPCO-Marubeni seeks JBIC funding for acquisition of Mirant
Saturday, December 30, 2006
Winning consortium Tokyo Electric Power Company and Marubeni Corporation are currently in negotiations with the Japan Bank for International Cooperation (JBIC) which was tapped as the major lender for their acquisition of the Mirant Corporation’s equity shares covering Philippine assets.
Sources from JBIC confirmed the on-going negotiations but they cannot say how much loan is being sought by the TEPCO/Marubeni group.
Aside from JBIC, it was gathered that TEPCO and Marubeni are also scouring for additional borrowings from Sumitomo Mitsui Bank and other commercial lenders.
It would be noted that during an extended negotiations for the sale of its Philippine business, Mirant steadfastly sought for evidence of availability of funds from the targeted lenders of the bidders.
The TEPCO/Marubeni group submitted a purchase price of .424 billion for the divested Mirant equity shares; which was way above the estimated .4 billion enterprise value of the Philippine assets.
As the acquiring group is finalizing the transaction with Mirant, the Philippine government sounded off that it would support TEPCO and Marubeni "to have a smooth transition."
While Mirant bypassed the government on its bid for consent on the sale, energy officials said they are willing to give the acquiring firms, primarily TEPCO, an easier entry believing that these investors would be able to help the country in its future power needs.
Energy Secretary Raphael P.M. Lotilla expressed he is delighted with initial feedback given by TEPCO and Marubeni that "they would serve all the requirements of the government."
Marubeni is considered an old-timer in the Philippine power industry; having already poured in vast investments in the .2-billion San Roque multi-purpose hydropower project; and its involvement in Mindanao geothermal projects. (MMV)
posted by philpower @ 8:32 AM,
