Partners Royal Dutch/Shell and Bechtel have sold their InterGen joint venture and 10 of its power plants for $1.75 billion to a partnership between US private equity fund AIG Highstar Capital II LP and the Ontario Teacher’s Pension Plan.
The power plant assets include generation in the UK, the Netherlands, Mexico, the Philippines, China, and Australia amounting to 5,500 MW.
The sale, which includes approximately $3 billion of non-recourse debt, will not include the company’s seven generation assets in the US, Colombia and Turkey, which account for 3,800 MW. These assets will be “reorganised prior to financial closing and retained by Shell and Bechtel pending further review,” the company said. The transaction is expected to close by mid-2005, subject to regulatory approval. interGen was established in 1995. Shell holds a 68% stake, while Bechtel holds the remaining 32%.
