French utility to acquire International Power
Company divested stake in Hubco last month and increased control in Uch plant.
LONDON:
French utility GDF Suez has agreed to buy the 30% of British power producer International Power (IPR) – a global independent electricity generating company – it does not already own for $10.8 billion, increasing its exposure to fast-growing markets. The share offer, at a 7% premium to an earlier approach by GDF, values IPR at about $36.2 billion and is expected to add to the French utility’s earnings.
Last month, IPR announced that it had entered into two separate sets of sale and purchase agreements in Pakistan, in connection with its holdings in the country’s largest independent power producer Hub Power Company Hubco and Uch-1 assets. International Power sold its total shareholding of 17.4% in Hub Power Company Limited and then acquired an additional 20.1% of Uch 1 from CER, taking the group’s holding to 94.6% in the company.
IPR Senior Independent Director Neville Simms said Monday’s offer was an “attractive proposal,” and that IPR’s independent directors will unanimously recommend it to shareholders. GDF completed its acquisition of 70% of IPR in February 2011, creating the world’s largest independent power producer.
A press release said that “IPR-GDF SUEZ Asia has a longstanding interest in the Pakistan power market” and that “these two transactions represent optimisation of our portfolio”. Both transactions expected to be completed by May 2012.
Published in The Express Tribune, April 17th, 2012.
French utility GDF Suez has agreed to buy the 30% of British power producer International Power (IPR) – a global independent electricity generating company – it does not already own for $10.8 billion, increasing its exposure to fast-growing markets. The share offer, at a 7% premium to an earlier approach by GDF, values IPR at about $36.2 billion and is expected to add to the French utility’s earnings.
Last month, IPR announced that it had entered into two separate sets of sale and purchase agreements in Pakistan, in connection with its holdings in the country’s largest independent power producer Hub Power Company Hubco and Uch-1 assets. International Power sold its total shareholding of 17.4% in Hub Power Company Limited and then acquired an additional 20.1% of Uch 1 from CER, taking the group’s holding to 94.6% in the company.
IPR Senior Independent Director Neville Simms said Monday’s offer was an “attractive proposal,” and that IPR’s independent directors will unanimously recommend it to shareholders. GDF completed its acquisition of 70% of IPR in February 2011, creating the world’s largest independent power producer.
A press release said that “IPR-GDF SUEZ Asia has a longstanding interest in the Pakistan power market” and that “these two transactions represent optimisation of our portfolio”. Both transactions expected to be completed by May 2012.
Published in The Express Tribune, April 17th, 2012.