Malaysia's Powertek Berhad has entered into exclusive negotiations with Electricite de France (EdF)to purchase the French developer's 100 per cent stakes in the Port Said and Gulf of Suez independent power projects (IPPs). A deal is expected to be concluded by November.
Several other Asian utilities were looking at the EdF assets, including Korea Electric Power Company (Kepco). The two plants, each with capacity of 680 MW, were commissioned in 2003. EdF is being advised on the sale by ABN Amro. EdF decided to sell its interests in the two IPPs as part of a strategic decision to concentrate on its core European market. The government utility was also converted to a limited liability company last year, in preparation for an initial public offering. Once the restructuring has been completed, EdF may look at equity opportunities again in the region. The sale would be the second to take place in the local power sector this year: in May, the US' Globeleqsecured full ownership of the Sidi Krier IPP (MEED 27:5:05). Powertek has recently acquired its first Middle East asset, taking a 25 per cent stake in the Taweelah B independent water and power project (IWPP) in Abu Dhabi (MEED 21:1:05).
A MEED Subscription...
Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.