Yahoo! News Aisa: Shell, Bechtel Shortlist 6 For InterGen JV Sale –Sources: “The move is part of an effort by Shell to raise up to $12 billion by 2006, mostly via asset sales.” (ShellNews.net) Posted 13 Jan 05
By Nina Sovich
Of DOW JONES NEWSWIRES
LONDON (Dow Jones)--Royal Dutch/Shell Group (RD, SC) and Bechtel Group Inc. (BTL.XX) have shortlisted at least six investors to buy their joint venture, InterGen, sources involved in the deal say. Royal Dutch/Shell Group and Bechtel put InterGen's portfolio of power plants up for sale in October. The move is part of an effort by Shell to raise up to $12 billion by 2006, mostly via asset sales.
Over the course of this year, Shell was forced to report that it had overestimated its proven oil reserves by 20%. The company is selling non-core assets like InterGen to focus on exploration and production to increase its base of proven reserves.
According to banking and industry sources, companies on the shortlist include Japan's Mitsubishi Corp. (8058.TO), which is teamed up with Hong Kong-based CLP Holdings Ltd. (0002.HK); Macquarie Bank of Australia (MBL.AU); Teachers' Private Capital, the private equity arm of Ontario Teachers' Pension Plan (OTP.YY) and American International Group (AIG); Tanjong PLC (2267.KU) of Malaysia; YTL Corp (4677.KU) of Malaysia and BTU Ventures, based in Dubai. Spokespeople for Teachers' Private Capital, Macquarie and BTU declined to comment. Spokespeople for Mitsubishi, YTL and Tanjong couldn't be reached. Shell also declined to comment.
InterGen's advisor Citigroup (C) is looking to sell the company in one package. It received first-round bids Nov. 29.
Although some companies may be allowed back into the bidding process, one banker said it is unlikely a "dark horse" will enter the bidding at the last moment.
"I think this is pretty much what we got now," he said. "Someone like Reliance might come back in with a huge offer, but I doubt it."
Reliance Energy (500390.BY) of India made a bid on the entire portfolio, but didn't make it through to the second round, a banking source said.
The portfolio for sale is made up of ten power plants with a total capacity of 7,844 megawatts.
The plants are scattered throughout Europe, Mexico, Australia, China and the Philippines.
They are worth $1.5 billion in equity and carry with them roughly $3.3 billion in debt, a banking source said.
Second-round bids are due in early March, a source said, but given the size of the portfolio and the fact that the data room hasn't yet been opened, those bids likely won't come in until April.
Click here for ShellNews.net HOME PAGE