| HONG KONG, March 7
HONG KONG, March 7 Exxon Mobil Corp, the
world's largest oil company by market value, has hired Barclays
to re-launch the sale of a stake in a Hong Kong power
venture, sources told Reuters, in a deal that could be worth up
to $2 billion.
The auction follows a failed effort by Exxon last year to
sell its stake in the venture to CLP Holdings and
state-owned China Southern Power Grid.
Under the revised plan, Exxon is looking to cut its 60
percent stake in Hong Kong-based Castle Peak Power Co Ltd by
about half, the sources said, as part of its efforts to divest
non-core assets around the world.
CLP, controlled by Hong Kong's wealthy Kadoorie family, owns
the remaining 40 percent of Castle Peak which operates three
coal-fired power stations.
The sources, who declined to be identified as the sale
process is confidential, said the 60 percent stake was valued at
around $3 billion last March. Around half of that plus a premium
would bring the deal value closer to $2 billion, they said.
Exxon Mobil said in an emailed statement that it does not
comment on rumours or speculation and that it routinely assesses
its global portfolio of businesses.
A CLP spokeswoman declined to comment and pointed to a
statement CLP made about the acquisition talks in its annual
report released last week.
"The negotiations with Exxon Mobil have been protracted and
there has been a considerable gap between CLP/CSG and Exxon
Mobil on the valuation and terms of any such acquisition," the
A Hong Kong-based spokesman for Barclays declined