InterGen assets sold for $1.75 billion

Shell Generating and Bechtel Enterprises Energy today signed an agreement to sell InterGen and 10 of its power plants for $1.75 billion.


Shell Generating and Bechtel Enterprises Energy today signed an agreement to sell InterGen and 10 of its power plants to a partnership between AIG Highstar Capital and Ontario Teachers’ Pension Plan for $1.75 billion.



Shell currently owns 68 percent of InterGen, with the rest held by Bechtel. Excluded from the sale are InterGen’s assets in the United States, Colombia, and Turkey, which will be reorganised and retained by Shell and Bechtel pending further review.



The InterGen plants to be sold are located in the UK, the Netherlands, Mexico, the Philippines, China, and Australia. InterGen’s equity share in these plants amounts to 5,500 megawatts of production capacity.



The transaction is expected to close mid-2005 and is subject to certain conditions and regulatory approvals.