Friday, October 19, 2007

PSEG Global sells plants in Peru to SN Power Norway & plans sale in Chile

PSEG Global yesterday said it has entered into an agreement to sell its ownership of four hydroelectric plants in Peru to a wholly owned subsidiary of Statkraft Norfund Power Invest of Norway for $284 million.

The sale of its Electroandes unit, which includes the power plants and 437 miles of electric transmission lines, is in keeping with the strategy of PSEG Global's parent, Newark-based Public Service Enterprise Group, to divest its international assets in an effort to reduce risk and raise capital for growth opportunities in its core U.S. markets.

PSEG Global bought Electroandes in December 2001 for $221 million.

Under the terms of the deal, SN Power also will assume $106 million in debt. After taxes and dividends paid prior to closing, PSEG Global expects to net cash proceeds totaling from $215 million to $225 million.

Electroandes includes four hydropower plants with a total capacity of 180 megawatts. It is located in the central Andean region of Peru.

Last week, PSEG Global said it is also exploring the sale of its 50 percent stake in Chilquinta Energia, an electric-distribution company in Chile, and its 38 percent ownership of Luz del Sur, a distribution company also in Peru.

"We are selling Electroandes as part of PSEG's announced strategy of opportunistically monetizing its international assets at attractive prices," said Matthew McGrath, president of PSEG Global. "We are pleased that we were able to make the sale to a company with an excellent reputation, significant experience in hydroelectric power operations and a strong environmental focus."

SN Power is a growing international renewable energy company that develops, owns and operates hydropower projects and plants in emerging markets. The company is jointly owned by Statkraft and Norfund. Statkraft is a state-owned Norwegian company and northern Europe's largest generator of hydroelectric power, operating 91 hydro plants.

Here is the full article.