US-based Mirant to sell RP power assets

Atlanta-based Mirant Corp. said on Wednesday it will sell all of its remaining generating assets in the Philippines and in the Caribbean as part of the company's financial re-engineering process after its recent bankruptcy. Mirant Philippines Corp., a subsidiary of Mirant Corp., is the Philippines' largest privately-owned power producer before it decided to sell its assets. "Mirant is commencing auction processes to sell its Philippines and Caribbean businesses," the US-based power firm said in a disclosure to the New York Stock Exchange. Mirant said the sale, to be carried out through "an auction process", will still have to undergo some regulatory and other approvals and consents. Mirant said these businesses will be regarded to be as "discontinued operations" beginning in this quarter. Once approved, the sales are expected to close by mid-2007. As Mirant generates cash from these sales, it plans to continue returning cash to its shareholders while maximizing the value of its net operating loss carryforwards. Mirant's financial advisor for the sale of the Philippines business will be Credit Suisse. JP Morgan will serve as financial advisor for the sale of the Caribbean businesses. Mirant has interests in three generating facilities in the Philippines: 1,218 MW Sual, 735 MW Pagbilao, and 20 percent stake in the 1,500 MW Ilijan. Its net ownership interest in these three generating facilities to be sold is 2,203 MW. The Philippines business contributed $370 million to its adjusted EBITDA in 2005. Energy Secretary Raphael Lotilla said Mirant's sale was expected given the financial condition of Mirant Philippines' parent firm. Lotilla said the Philippine government, for its part, is ensuring that buyers of these assets are qualified to perform the obligations of Mirant Philippines to the National Power Corp. (Napocor), which include the buyer's maintenance of the IPP (independent power producers) contracts attached to the assets on sale. The energy secretary said the government still believes that operations in these plants remain profitable. - GMANews.TV