International Power Announces the Acquisition of Edison Mission Energy's International Generation Portfolio
Key Highlights
(London – 30 July 2004) International Power plc ("International Power") today announces that it has agreed to acquire, in a 70:30 partnership with Mitsui & Co., Ltd. ("Mitsui"), the international generation portfolio of Edison Mission Energy (the "EME Portfolio") for a total purchase price of $2.3 billion, subject to certain adjustments, resulting in a net cash consideration of approximately $2.2 billion (£1.2 billion) (the "Acquisition").
International Power's investment for its 70% stake will be $677 million (£376 million). The remainder of the consideration will be funded with ordinary and preferred equity from Mitsui and non-recourse debt.
The EME Portfolio consists of 13 power generation projects with a total net generation capacity of 5.4 GW, located in 9 countries.
This Acquisition:
- has a highly complementary geographic fit with International Power’s existing portfolio
- is expected to be significantly earnings enhancing in the first full year of ownership and to produce attractive rates of return
- improves quality of earnings, with 11 of the 13 acquired assets operating under long term contracts
The Acquisition is expected to complete late this year and is, inter alia, subject to International Power shareholder approval, regulatory approvals and project level consents.
Philip Cox, CEO of International Power, said, "This acquisition is a rare opportunity to acquire a high quality set of assets that complement our existing portfolio, and which we are confident will significantly improve the level and quality of our earnings going forward. This is an important transaction that will create value for our shareholders."
Unless otherwise stated a conversion rate of £1:US$1.8 has been applied in this announcement.
This summary should be read in conjunction with the full text of this announcement.
Full announcement including financials in PDF format.