Company News

PFI - BG starts power asset disposal, others to follow

London, Nov 27 (Project Finance International) - BG BG.L has issued the teaser document for the sale of its US and UK power stations assets. The sale is being conducted by Goldman Sachs. Not included in the sale are five cogeneration plants in Italy which sell thermal power direct to Fiat and other offtakers. The sale of the company's Asian power assets is being handled separately with NM Rothschild advising. The news comes as other global power portfolios owners are seeking buyers.

BG’s portfolio totals 4400MW and in the first half of 2009 its revenues dropped 12% to £262m, compared with the first half of 2008, as global power prices fell. In October it was reported Abu Dhabi state owned companies Taqa and ADWEA were potential US$1.5bn buyers for the portfolio but their interest is said to have cooled and BG has now decided to split the sale regionally.

The US/UK portfolio totals 3000MW and includes the 1246MW Premier Power plant in Northern Ireland, the largest independent generator in Ireland.

The BG portfolio is one of global power station portfolios looking for buyers. Indian infrastructure company GMR GMRI.BO has informally approached buyers for its 50% stake in InterGen which has a portfolio of 8000MW across the globe. GMR bought the stake last year from AIG Highstar for US$1.1bn backed by a two year US$1bn loan from Indian bank Axis Bank. Ontario Teachers Pension Fund holds the other 50%. American firm AES AES.N is selling a portfolio of assets in Oman and Pakistan. Saudi company Acwapower is believed to the front runner. And there has been renewed stock market speculation this week that UK based International Power IPR.L, which has a global portfolio of 20,000MW, could once again be a takeover target with GdF Suez GSZ.PAsaid to be looking.