It's not often that the largest energy producer in the Philippines comes up for sale. This island nation in Southeast Asia is not known for megadeals but the announcement of Atlanta-based Mirant Corp. on July 12 that it is putting its Mirant Philippines Corp., the country's biggest independent power producer up for sale has raised significant interest from local players as well as would-be acquirers from outside the Philippines. Filipino-Chinese banking tycoon George Ty; Filipino-Spanish families Ayala and Aboitiz; as well as Philippine Long Distance Telephone Co. chairman Manuel Pangilinan have reportedly expressed interest for Mirant Philippines. But they may have to compete with the likes of AIG, One Energy (a 50-50 joint venture of Hong Kong’s CLP Holdings Ltd. and Japan’s Mitsubishi Corp.), Mitsubishi Corp., China Light and Power, Korea Electric Power, Tokyo Electric and Kyushu Electric. Some analysts estimate Mirant Philippines could garner as much as $3 billion. The hefty price tag is attributed to Mirant's lucrative long-term power purchase agreements, according to the Philippine Daily Inquirer. The company in total has net ownership interest in three plants in the Philippines that generate a total of 2,203 megawatts. Overall, Mirant Philippines contributed $370 million in adjusted earnings before interest, taxes, depreciation and amortization to its parent firm in 2005. After emerging from Chapter 11 in January, Mirant wants to focus on its energy interests in the U.S.— Gerald Magpily
See article from Philippine Daily Inquirer
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