Partial divestment of Al Hidd plant in Bahrain
GDF SUEZ and International Power (70% owned by GDF SUEZ) announce that the sale of 40% of Hidd Power Company (HPC) in Bahrain to Malakoff International Ltd for USD 113.4 million (€87.6 million) has been completed. The plant has a total capacity of 929MW and 90 MIGD of water desalination.
This transaction is in line with International Power’s agreement to sell down part of its interest in the Bahraini power market to comply with regulatory requirements following the combination with GDF SUEZ Energy International in February 2011. In addition to regulatory compliance, this transaction also contributes €0.6 billion to the GDF SUEZ €10 billion portfolio optimisation programme.
Following this sale, International Power will continue to own 30% of HPC, which will now be accounted for under the equity method as an associate with its net debt (of €538 million as at 31 March 2012) not included within the Group net debt. As at 31 December 2011, HPC was an asset held for sale and therefore its net debt was not consolidated.
Notes to Editors
In 2006, HPC was sold by the Government of Bahrain, via a public tender, to a consortium of International Power (40%), GDF SUEZ Energy International (30%) and Sumitomo Corporation (30%). An exchange rate of €1:USD 1.294 has been used in this announcement.