Press Releases
01/07/2009
International Power Signs Agreement to Sell Czech Business to J&T Group
(London – 1 July 2009) International Power announces that it has signed an agreement for the sale of its entire Czech business to the Czecho-Slovak investment firm J&T Group. The sale comprises the wholly-owned Czech subsidiary International Power Opatovice (IPO), as well as IPO's interests in its subsidiaries Pražská Teplárenská (PT) and Energotrans (ET). The business will be sold for an enterprise value of CZK22.5 billion (£738.3 million), including CZK4.8 billion (£157.5 million) of existing project level debt, representing net cash proceeds to International Power of CZK17.7 billion (£580.8 million) and a profit on sale after tax of some £380 million. The transaction is subject to Czech regulatory clearance and completion is expected by the end of 2009.
IPO owns and operates the 363MW Opatovice coal-fired combined heat and power plant, located to the east of Prague. IPO also owns 49% of PT, a district heating business (136MW gross, 66MW net), which in turn owns 100% of ET, the 352MW (172MW net) combined heat and power plant which is PT's primary heat supplier.
Philip Cox, Chief Executive of International Power, said, "Following significant interest from a number of parties we have agreed a sale of our Czech business. The attractive sale price, combined with the limited scope to materially expand our business in the Czech Republic, means that this transaction represents excellent value for International Power and its shareholders."
Notes to Editors
Based on the latest audited results for the year ended 31 December 2008 (prepared under Czech GAAP)
- the unconsolidated profit before tax for IPO was CZK2,983 million, which includes CZK733 million of dividends received from PT
- the consolidated profit before tax for PT (including 100% of ET) was CZK2,224 million
- the unconsolidated gross assets of IPO amounted to CZK10,232 million, which includes CZK2,703 million for its investment in PT
- the consolidated gross assets of PT (including 100% of ET) amounted to CZK13,650 million
An exchange rate of £1:CZK30.476 has been applied in this announcement.
For further information please contact:
| Investor Contact: | Media Contact: |
| Hillary Berger | Beth Akers |
| Telephone: +44 (0)20 7320 8839 | Telephone: +44 (0)20 7320 8622 |
About International Power
International Power plc is a leading independent electricity generating company with 33,227MW gross (21,358MW net) in operation and 3,280MW gross (978MW net) under construction. International Power has power plants in operation or under construction in Australia, the United States of America, the United Kingdom, Belgium, the Czech Republic, France, Germany, Italy, the Netherlands, Portugal, Spain, Turkey, Bahrain, Oman, Qatar, Saudi Arabia, the UAE, Indonesia, Pakistan, Thailand and Puerto Rico. International Power is listed on the London Stock Exchange with ticker symbol IPR. The Company website is: www.ipplc.com.
