CMS Energy Subsidiaries Reach Agreements to Sell GasAtacama of Chile and Jamaica Private Power Company Limited for a Combined $9
June 01 2007 - 7:54PM
PR Newswire (US)
JACKSON, Mich., June 1 /PRNewswire-FirstCall/ -- CMS Energy
subsidiaries have entered into an agreement to sell their interests
in GasAtacama of Chile and a separate agreement to sell their
interests in Jamaica Private Power Company Limited (JPPC) to
Ashmore Energy International (AEI) for a combined $94 million. AEI
is an owner and operator of essential energy infrastructure assets
in emerging markets worldwide. CMS International Ventures LLC and
other subsidiaries of CMS Energy entered into an agreement to sell
CMS Energy's interests in the GasAtacama business. The sale of
these interests in GasAtacama is expected to close in the third
quarter. GasAtacama transports natural gas to northern Chile from
Argentina, and owns and operates gas pipelines as well as a 780
megawatt combined-cycle, gas- fired power generation facility that
is located in Chile. CMS Energy and Endesa of Chile built the
GasAtacama project and placed it in service in 1999. Separately,
other subsidiaries of CMS Energy entered into an agreement with AEI
to sell CMS Energy's interests in JPPC and an associated company.
The sale of interests in JPPC is expected to close by year-end
2007. JPPC operates a 63 megawatt, diesel-fueled power plant
located in Rockfort, Kingston, Jamaica. The facility began
commercial operation in 1997. The sales of both GasAtacama of Chile
and JPPC are subject to certain third party consents and/or
waivers. "These agreements continue the excellent progress our
Company has made on the sale of our international assets," said
David W. Joos, Chief Executive Officer for CMS Energy. Proceeds
from both sales will be used to reduce debt at CMS Energy and
invest in CMS Energy's Michigan utility, Consumers Energy. JP
Morgan Securities, Inc. served as financial advisor to CMS Energy
for the transaction. CMS Energy is a Michigan-based company that
has as its primary business operations an electric and natural gas
utility, natural gas pipeline systems, and independent power
generation. This news release contains "forward-looking statements"
as defined in Rule 3b-6 of the Securities Exchange Act of 1934, as
amended, Rule 175 of the Securities Act of 1933, as amended, and
relevant legal decisions. The forward-looking statements are
subject to risks and uncertainties. They should be read in
conjunction with "Forward-Looking Statements and Risk Factors"
found in the Management Discussion and Analysis sections of CMS
Energy's Form 10-K and Consumers' Form 10-K for the Year Ended
December 31, 2006 and as updated in CMS Energy's and Consumers'
Forms 10-Q for the Quarter Ended March 31, 2007 (CMS Energy's and
Consumers Energy's "Forward-Looking Statements and Risk Factors"
sections are both incorporated herein by reference), that discuss
important factors that could cause CMS Energy's and Consumers
Energy's results to differ materially from those anticipated in
such statements. For more information on CMS Energy, please visit
our web site at: http://www.cmsenergy.com/ DATASOURCE: CMS Energy
CONTACT: Media Contacts: Dan Bishop, +1-517-788-2395, or Jeff
Holyfield, +1-517-788-2394; or Investment Analyst Contact: CMS
Energy Investor Relations, +1-517-788-2590, all for CMS Energy Web
site: http://www.cmsenergy.com/
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