GDF Suez sells 40 % in Bahrain's Hidd Power Co to Malaysia's Malakoff
14 May 2012
French utility GDF Suez yesterday sold a 40-per cent stake in Bahrain's Hidd Power Company (HPC) to Malaysia's largest independent power producer, Malakoff, in order to comply with Bahrain's regulatory requirements following its acquisition of International Power.
GDF Suez, Europe's biggest utility company by market value, had last year acquired International Power (See: GDF Suez to buy British utility International Power for $10 billion) last year and the combined entity held 70 per cent in the Bahraini company.
HPC was sold by the government of Bahrain, via public tender, to a consortium of International Power, GDF Suez and Sumitomo Corp.
Since the combined holdings of the two entities exceeded the Bahraini market concentration limits of 30 per cent of Bahrain's installed generation capacity, the partial sale of HPC allows the combined International Power-GDF Suez to comply with the country's regulatory requirements.
Following this sale, HPC will be 40-per cent owned by Malakoff, 30 per cent by International Power and 30 per cent by Sumitomo.
Although the companies did not reveal the financial terms of the transaction, several media reports suggested that GDF, which is also the largest shareholder in the $2.1- billion Al Dur power and water project in Bahrain, sold the 40-per cent stake for around $200 million.