Seattle--TransAlta has agreed to sell for $303.5 million two natural gas-fired
plants in Mexico -- totaling 511 MW -- to InterGen Global Ventures, the Calgary-based company said Wednesday.
In the deal are the 252 MW Campeche plant, the 259 MW Chihuahua plant and
associated commercial arrangements for power sold to Comision Federal de
Electridad. The deal is subject to regulatory approval in Mexico and is
expected to close by mid-year.
Based on the book value of the plants as of February 19, TransAlta expects to take a charge to first-quarter earnings of C$55 million (US$54.1 million) to C$65 million to reflect the difference between the purchase price and the businesses' book value. TransAlta plans to use a significant portion of the proceeds to buy back shares.
TransAlta has told analysts for some time that it is considering options for the plants. Luminus Group--TransAlta's largest shareholder comprising Luminus Management and LS Power--has been urging TransAlta to sell non-core assets,
such as the plants, for several months.
TransAlta has 80 employees at the Mexico plants. "We will work closely with InterGen, an experienced and respected power plant operator with assets in Mexico, to execute a timely and smooth transition process for employees,"
said TransAlta President and CEO Steve Snyder.
plants in Mexico -- totaling 511 MW -- to InterGen Global Ventures, the Calgary-based company said Wednesday.
In the deal are the 252 MW Campeche plant, the 259 MW Chihuahua plant and
associated commercial arrangements for power sold to Comision Federal de
Electridad. The deal is subject to regulatory approval in Mexico and is
expected to close by mid-year.
Based on the book value of the plants as of February 19, TransAlta expects to take a charge to first-quarter earnings of C$55 million (US$54.1 million) to C$65 million to reflect the difference between the purchase price and the businesses' book value. TransAlta plans to use a significant portion of the proceeds to buy back shares.
TransAlta has told analysts for some time that it is considering options for the plants. Luminus Group--TransAlta's largest shareholder comprising Luminus Management and LS Power--has been urging TransAlta to sell non-core assets,
such as the plants, for several months.
TransAlta has 80 employees at the Mexico plants. "We will work closely with InterGen, an experienced and respected power plant operator with assets in Mexico, to execute a timely and smooth transition process for employees,"
said TransAlta President and CEO Steve Snyder.
