A subsidiary of North American power company, Calpine Corporation, has agreed to sell its 1,200-megawatt Saltend Energy Centre for a total purchase price of £490 million ($906 million), plus adjustments for working capital expected to be approximately $19 million. Saltend is a natural gas-fired, cogeneration power plant located in Hull, England.
Calpine is selling the Saltend power plant to a partnership between International Power and Mitsui. Calpine currently anticipates the sale to close on or about July 26, 2005, pending regulatory approval and other conditions of closing.
“We acquired the Saltend power plant in August 2001 for $810 million,” commented Calpine CFO Bob Kelly. “This transaction is an excellent opportunity for Calpine to capture significant value for our Saltend investment.”
Net proceeds from the sale of the Saltend Energy Centre will be used to redeem two existing series of Redeemable Preferred Shares for approximately $620 million.