Drax sale stall fears as International Power withdraws

The sale of the UK’s largest power plant, the 4 GW coal-fired Drax is still under way despite the withdrawal by a consortium of International Power and Japanese finance house Mitsui.

Drax Group announced the current status of approaches from third parties interested in acquiring the company, as an alternative to the refinancing and listing of the company proposed to take place on 15 December 2005.

Consortia which approached Drax were:

• Constellation Energy and Perry Capital, now joined by Blackstone Group and Hellman & Friedman (the BCHP consortium);
• Apollo Management/Texas Pacific Group/TowerBrook (the ATT consortium); and

• International Power/Mitsui (the IPM consortium).

International Power announced the withdrawal of the IPM consortium on 7 November.

Drax and its advisers have continued to hold discussions with the other consortia.