Pirate tells Mirant to sell int’l assets

[Tuff Gong]

Mon Jun 26, 2006
JPS parent co. encouraged to sell int’l assets

A recommendation has been made for US-based energy giant Mirant Corporation—the parent company of the Jamaica Public Service (JPS) Company—to sell its international assets.

According to a Reuters report, the proposal has been presented to Mirant by the American investment firm Pirate Capital.

Pirate was one of several hedge funds that recently pressured Mirant to scrap an unsolicited eight billion dollar takeover offer for another US power company. NRG Energy Incorporated.

Pirate Capital is urging Mirant to raise its stock price to $40 by year-end or put itself up for sale.

It says another option would be to sell its international assets in order to raise cash.

Reuters says a Mirant spokesman declined to comment on the recommendation.

Officials of Pirate and Mirant are to meet this Wednesday, during which the proposals may be discussed.

Mirant purchased 80 per cent of the JPS in 2001.

JPS parent co. encouraged to sell int’l assets

[Tuff Gong]

Mirant to sell its stake in JPS


Tue Jul 11, 2006
Mirant to sell its stake in JPS

The American firm, Mirant Corporation, has announced plans to sell its 80 per cent stake in the Jamaica Public Service (JPS) Company.

The company says the sale is expected to be closed by the middle of next year and is part of a plan to cut its overseas business ties.

According to Mirant the plan, announced Tuesday morning, is aimed at enhancing its shareholders value.

The business plan includes the immediate launch of a modified tender offer for up to 43 million shares of Mirant's common stock and the commencement of auctions to sell its businesses in the Philippines and the Caribbean.

Mirant said the cash generated through these sales will be returned to its shareholders.

However the company notes that the sale will be subject to regulatory and other approvals and consent.

The international firm JP Morgan will serve as financial advisor for the sale of the Caribbean businesses.

In this region, Mirant holds an 80 per cent stake in the JPS and a 55 per cent stake in Grand Bahama Power Company.

Mirant also owns a 39 per cent interest in the Power Generation Company of Trinidad and Tobago and a 25.5 per cent share in Curacao Utilities Company.

Last year the Caribbean businesses contributed US $156 million to Mirant.

The Atlanta based firm purchased 80 per cent of the government's share in the JPS in 2001 for US $201 million.

Since that time the company has spent millions more to modernise its equipment and increase its generating capacity.

The government has announced plans to divest its remaining 20 per cent stake in the company this year.

However it is not yet clear how Tuesday's disclosure by Mirant will affect that plan.

And officials of the Jamaica Public Service say the Jamaican government has been informed of Mirant's decision.

Speaking with the RJR News Centre Tuesday morning, Corporate Communications Manager at the JPS, Winsome Callum, said the government was officially informed between Monday night and Tuesday morning.

However, attempts by the RJR News Centre to get a comment from the Minister with responsibility for Energy, Phillip Paulwell, were unsuccessful.

It is understood that Mr. Paulwell is overseas.

State Minister in that Ministry, Senator Kern Spencer, said he was unable to comment.

Mirant to sell its stake in JPS