2007

Marubeni to expand business in integrated utilities and IPP operations - Acquiring equity stakes in electricity holding company in the Caribbean nations -

Apr. 19. 2007
Marubeni Corporation


Marubeni Corporation (Marubeni) has been awarded in competitive auction process carried out by US Independent Power Producer (IPP), Mirant Corporation (Mirant) which would result Marubeni in purchasing equity shares of Mirant Caribbean’s Holdings (MCH) and has reached the signing of definitive sale and purchase agreement with Mirant International Investments on April 18. The total contract price is US$ 580 Million.
 
MCH owns majority equity position in integrated utility in Grand Bahamas Island and Jamaica. It also owns an IPP stake in Trinidad and Tobago and Curacao. Total net generating capacity is 1150MW which comprises of the followings:

- 55.4% equity interest in Grand Bahama Power Company in Grand Bahama
- 80% equity interest in Jamaica Public Service Company in Jamaica
- 39% equity interest in PowerGen which is an IPP that supplies 80% of total electricity demand in Trinidad & Tobago
- 25.5% equity interest in Curacao Utilities Company which supplies electric, steam and water to refinery plant of Petroleos de Venezuela, S.A. in Curacao Island

Mizuho Corporate Bank was the financial advisor to Marubeni. Total purchase price shall be funded by Marubeni's own equity and debt facilities raised from banks.
 
Marubeni envisions Overseas IPP Investment as one of the core growing business fields and has been active in growing strong global IPP asset portfolio. The transaction enables Marubeni in enlarging its IPP presence but also it encompasses Transmission and Distribution through integrated utilities in these regions. Since 2002, we have accumulated our knowledge base in retail and wholesale businesses and deem that it would contribute to supply approximately 600,000 households in Grand Bahama and Jamaica. Marubeni also looks forward to developing long-tern and strategic relationships with the government partners in the Caribbean and to growing their relationship/investment beyond the power sector.
 
In December 2006, Marubeni has also signed a sale and purchase agreement with our joint partner, Tokyo Electric Power Company, purchasing Mirant Asia Pacific. Combined transactions adds up our net capacity holdings to approx 5,400MW. Marubeni continues to act proactively in the power generation arena.

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