Press Releases
17/12/2004
International Power completes the acquisition of Edison Mission Energy’s International Generation Portfolio
(London – 17 December 2004) International Power is pleased to announce today the completion of the acquisition of the international generation portfolio of Edison Mission Energy (the “EME Portfolio”), in a 70:30 partnership with Mitsui & Co., Ltd of Japan, for a consideration of $2.0 billion (£1.04 billion). This follows the Extraordinary General Meeting on 25 November 2004, when shareholders voted overwhelmingly in favour of the transaction.
The completed acquisition includes all of the EME Portfolio, as detailed in the Shareholders’ Circular dated 5 November 2004, except for CBK, a 396 MW (net) hydro scheme in the Philippines, Tri Energy, a 175 MW (net) gas fired plant in Thailand and Doga, a 144MW (net) gas fired plant in Turkey. As a result of this, and other completion adjustments principally related to working capital, the net cash consideration was reduced by $217 million (£113 million) from the expected net cash consideration of $2.2 billion (£1.15 billion) for the entire EME Portfolio. CBK, Tri Energy and Doga will be held under contract between International Power, Mitsui and EME with a view to completing the acquisition of these assets at a later date, subject to the satisfaction of certain conditions precedent.
On 30 July 2004, International Power announced that the acquisition would be partially funded by a senior secured bridge loan. This loan will now not be drawn, as it has been replaced with a structured eight-year term loan of $797 million (£415 million), provided by a group of relationship banks on more competitive terms.
Philip Cox, Chief Executive Officer of International Power, said, “We are delighted to have successfully completed the acquisition of EME’s international generation portfolio, and now look forward to implementing our well advanced integration plans. We remain wholly focussed on delivering full value to International Power shareholders from this significantly earnings enhancing acquisition.”
A conversion rate of £1:US$1.92 has been applied in this announcement.
For further information please contact:
| Media Contact: | Finsbury Group: | Investor Contact: |
| Sara Richardson | Anthony Silverman | Anna Hirst |
| +44 (0)20 7320 8619 | +44 (0)20 7251 3801 | +44 (0)20 7320 8788 |
| Morgan Stanley: | Cazenove: | |
| +44(0) 20 7425 5555 | +44(0) 20 7588 2828 | |
| William Vereker | Nick Wiles | |
| Alisdair Gayne | Piers Coombs | |
| Alastair Cochran | Robert Constant | |
| Philip Apostolides |
About International Power
International Power plc is a leading independent electricity generating company with 15,219 MW (net) in operation and 1,649 MW (net) under construction. International Power has power plants in operation or under construction in Australia, the United States of America, the United Kingdom, the Czech Republic, Italy, Portugal, Spain, Turkey, Oman, Saudi Arabia, the UAE, Indonesia, Malaysia, Pakistan, Puerto Rico and Thailand. International Power was listed on the London Stock Exchange and the New York Stock Exchange (as ADR’s), on 2 October 2000. The ticker symbol on both stock exchanges is "IPR".
