Calpine has completed the sale of its 1,200-megawatt Saltend Energy Centre in Hull, England for a total price of $862.5 million.
Calpine has sold the natural gas-fired Saltend power plant to a company indirectly owned by International Power plc and Mitsui & Co., Ltd. UK based International Power will own 70% of the plant, while Japanese company Mitsui will own 30%. The sale price represents a small gain on the approximately $810 million the company paid for the plant four years ago.
Having completed the divestment, which is part of the company’s on-going strategic program to reduce debt and optimize its power plant portfolio, Calpine now no longer owns any power generating assets in the UK.
The sale of Saltend has allowed Calpine to capture significant value for our investment, said Calpine CFO Bob Kelly. The proceeds from this sale will allow Calpine to reduce debt and focus our efforts on the North American power market.