GDF Suez sells Bahrain power stake to Malaysian firm
DUBAI (Reuters) - French utility GDF Suez (GSZ.PA) has sold a 40-percent stake in Bahrain's Al Hidd power and water plant to Malaysia's largest independent power producer, Malakoff, to meet a regulatory requirement following GDF's acquisition of International Power.
GDF acquired International Power last year and the combined entity held 70 percent in the Bahraini plant. Bahrain's government wanted GDF to reduce the stake to prevent the concentration of ownership.
"This partial sale of Hidd Power Co allows the combined International Power-GDF Suez entity to comply with the Kingdom's regulatory requirements," GDF Suez and Malakoff said in a joint statement Sunday.
No financial details of the transaction was provided.
The Al Hidd plant is amongst the largest independent water and power in Bahrain, providing about 39 percent of the kingdom's power needs and 62 percent of its water requirements, according to GDF Suez's statement.
After the sale, the power plant will be owned 40 percent by Malakoff, 30 percent by GDF-International Power and 30 percent by Japan's Sumitomo Corp (8053.T).
GDF had hired HSBC Holdings (HSBA.L) to arrange the sale of its 30-percent stake in the plant, sources told Reuters in July last year, pegging the enterprise value of the stake at $200 million.
GDF, owner of the largest gas transport network in Europe, is also the top shareholder in the $2.1 billion Al Dur power and water project in Bahrain with a 45-percent stake.
Malakoff has a net generating capacity of 5,020 megawatts from its six power stations and has already won and implemented projects in Saudi Arabia and Algeria.
(Reporting by Dinesh Nair; Editing by Sitaraman Shankar)
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