Mirant Announces Agreement for Sale of Philippine Business
December 11 2006 - 7:52AM
PR Newswire (US)
ATLANTA, Dec. 11 /PRNewswire-FirstCall/ -- Mirant Corporation
(NYSE:MIR) announced today that it has entered into a definitive
purchase and sale agreement with a consortium of The Tokyo Electric
Power Company, Incorporated and Marubeni Corporation for the sale
of its Philippine business for a purchase price of $3.424 billion
plus working capital at the closing. After the payment of related
debt (estimated to be $642 million at the closing), the net
proceeds to Mirant are expected to be $3.152 billion. The
transaction is expected to close in the second quarter of 2007
after the satisfaction of certain conditions, including the Sual
plant being operational. Mirant's financial advisor for the sale is
Credit Suisse. "The Philippines is a good environment for foreign
investment and has been a wonderful place for us to do business,"
said Edward R. Muller, Chairman and Chief Executive Officer of
Mirant Corporation. "We wish the Tokyo Electric- Marubeni
consortium and the Philippine people great success." The amount of
net operating loss carryforwards (NOLs) that are available in 2007
to offset the taxable gain resulting from this transaction
(expected to be approximately $1.1 billion), results of other
transactions expected to close in 2007 and Mirant's other
anticipated taxable income for the year will depend on whether
Mirant elects to be treated under section 382(l)(5) or section
382(l)(6) of the Internal Revenue Code, an election that Mirant
must make not later than September 17, 2007. Although the ultimate
decision on this election will depend on Mirant's anticipated
overall 2007 tax position, it is more likely than not that Mirant
will elect to determine its NOLs under section 382(l)(5). Upon
completion of the transaction, Mirant expects to record a pre-tax
book gain of approximately $2.2 billion. As previously announced,
Mirant plans to continue returning cash to its shareholders upon
completion of its planned asset and business sales. The amount of
cash returned will be determined based on the outlook for the
continuing business (1) to preserve the credit profile of the
continuing business, (2) to maintain adequate liquidity for
expected cash requirements including, among other things, capital
expenditures for the continuing business, and (3) to retain
sufficient working capital to manage fluctuations in commodity
prices. Mirant is a competitive energy company that produces and
sells electricity in the United States, the Caribbean, and the
Philippines. Mirant owns or leases approximately 17,300 megawatts
of electric generating capacity globally. The company operates an
asset management and energy marketing organization from its
headquarters in Atlanta. For more information, please visit
http://www.mirant.com/. Cautionary Language Regarding
Forward-Looking Statements Some of the statements included herein
involve forward-looking information. Mirant cautions that these
statements involve known and unknown risks and that there can be no
assurance that such results will occur. There are various important
factors that could cause actual results to differ materially from
those indicated in the forward-looking statements, such as, but not
limited to, the ability of Mirant to satisfy the conditions to
closing of the transaction, including its ability to complete the
repairs to the Sual plant and return it to operation and the
absence of any material adverse change that would prevent closing,
and other factors discussed in Mirant's Form 10-K for the year
ended December 31, 2005, and its Form 10-Q for the quarter ended
September 30, 2006. Mirant undertakes no obligation to update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise. DATASOURCE: Mirant
Corporation CONTACT: Media, Mary Ann Arico, +1-678-579-7553, or ,
or Investor Relations, Mary Ann Arico, +1-678-579-7553, or , or
Sarah Stashak, +1-678-579-6940, or , or Stockholder inquiries,
+1-678-579-7777 , all of Mirant Corporation Web site:
http://www.mirant.com/
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