International Power has completed its 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 $2.0 billion following an overwhelming shareholder vote in favour of the transaction. T
The acquisition includes all of the EME portfolio except for CBK, a 396 MW hydro scheme in the Philippines, Tri Energy, a 175 MW gas fired plant in Thailand and Doga, a 144MW gas fired plant in Turkey. CBK, Tri Energy and Doga will be held under contract between International Power, Mitsui and EME with a view to completing the acquisition at a later date.
The originally announced loan arrangements have been replaced with a structured eight-year term loan of $797 million provided by a group of relationship banks on more competitive terms. Philip Cox, CEO of International Power, said, “We are delighted to have successfully completed the acquisition … and now look forward to implementing our well advanced integration plans.” The acquisition is expected to significantly enhance IP earnings.