International Power completes Joint Venture with Mitsui
(London – 20 June 2007) Further to our announcement of 29
March 2007, International Power is pleased to announce today the
completion of the joint venture with Mitsui & Co., Ltd
(Mitsui). The joint venture creates a common ownership platform for
its UK* assets (to be held 75% International Power and 25% Mitsui)
and to equalise its returns from Paiton, Indonesia. This follows
the Extraordinary General Meeting on 15 June 2007, when
shareholders voted overwhelmingly in favour of the transaction.
As part of this agreement, International Power sold 25%
equity interest in Rugeley, Deeside and Indian Queens to Mitsui and
acquired an additional 5% equity interest in First Hydro and
Saltend. Mitsui has provided a £200 million credit
facility to support trading activities of the UK assets.
International Power has also acquired the right to additional
returns from Paiton equivalent to 9.2% of Paiton's earnings and
cash distributions**.
The sale and purchase of the interests in the UK assets and
Paiton resulted in a net cash payment of £85 million to
International Power. The transaction is expected to be marginally
earnings enhancing in the first full year.
For further information on this transaction, please see the
circular in the reports section of our website
www.ipplc.com.
Notes
* Ownership in Derwent Cogeneration Limited, held jointly by
International Power and Mitsui, will be unchanged as a result of
this transaction.
** Via the acquisition of an economic interest from Mitsui, this
transaction equalises the returns for International Power and
Mitsui from Paiton (at 40% each) but does not entail any transfer
of shares or change of management structure.
Notes to Editors
IPR ownership of UK assets prior to transaction:
| |
Location |
Fuel |
Type |
Gross capacity
(MW) |
IPR Ownership |
Net capacity
(MW) |
| Deeside |
UK |
Gas |
CCGT |
500 |
100% |
500 |
| Derwent |
UK |
Gas |
CCGT |
214 |
23% |
50 |
| First Hydro |
UK |
Pumped Storage |
|
2,088 |
70% |
1,462 |
Indian
Queens |
UK |
Oil |
OCGT |
140 |
100% |
140 |
| Rugeley |
UK |
Coal |
50 MW
of OCGT |
1,050 |
100% |
1,050 |
|
Saltend |
UK |
Gas |
CCGT |
1,200 |
70% |
840 |
IPR ownership of UK assets following transaction:
| |
Location |
Fuel |
Type |
Gross capacity
(MW) |
IPR Ownership |
Net capacity
(MW) |
| Deeside |
UK |
Gas |
CCGT |
500 |
75% |
375 |
| Derwent |
UK |
Gas |
CCGT |
214 |
23% |
50 |
| First Hydro |
UK |
Pumped Storage |
|
2,088 |
75% |
1,566 |
Indian
Queens |
UK |
Oil |
OCGT |
140 |
75% |
105 |
| Rugeley |
UK |
Coal |
50 MW
of OCGT |
1,050 |
75% |
788 |
|
Saltend |
UK |
Gas |
CCGT |
1,200 |
75% |
900 |
For further information please contact:
International Power
Investor & Media Contact:
James Flanagan
Telephone: +44 (0)20 7320 8869 |
About International Power
International Power plc is a leading independent electricity
generating company with 29,913 MW gross (18,237 MW net) in
operation and 633 MW gross (192 MW net) under construction.
International Power has power plants in operation or under
construction in Australia, the United States of America, the United
Kingdom, France, Germany, the Czech Republic, Italy, Portugal,
Spain, Turkey, Bahrain, Oman, Qatar, Saudi Arabia, the UAE,
Indonesia, Pakistan, Puerto Rico and Thailand. International Power
is listed on the London Stock Exchange and the New York Stock
Exchange (as ADR's) with ticker symbol IPR. Company website:
www.ipplc.com.