Globeleq sells 3 power plants in Bangladesh to Malaysian firm
Monday, 23 July 2007
A Z M Anas
Globeleq, the British power company, has sold out seven of its power units set up across South Asia and North Africa, including three in Bangladesh, to Pendekar Energy Limited of Malaysia.
The British power generator owns as well as operates three power plants in Bangladesh-Meghnaghat Power Company (450 MW) and Haripur Power Company (360MW) and NEPC (113)-with a combined capacity of more than 900 MW.
Standard Chartered Bank, which acts as an inter-creditor agent, is coordinating with the lender groups to get the seal of approval for the deal under which the Malaysian consortium purchased the power plants in Bangladesh, Pakistan, Sri Lanka and Egypt for $493 million, competent sources said.
The CDC Group, through its subsidiary CDC Globeleq Holdings Limited, has recently struck an agreement to sell the entire share of Globeleq Ltd to Pendekar, a consortium of Tanjong Energy Holdings (Malaysia) and Aljomaih Automotive Company (Saudi Arabia).
"We've been asked to forward our consent of the sale to Standard Chartered within August 6," a source, whose agency provided loans for Meghnaghat plant, told the FE Sunday.
"However, we've to consult with our legal experts before giving our approval for the sale," the source pointed out.
The Globeleq is also in the process to get approval of sale from the Power Division, it is learnt.
Meanwhile, Globeleq said that the sale would not impinge on the company's Bangladesh operations as elsewhere in Pakistan, Sri Lanka and Egypt, given the Malaysian consortium's good track record.
"… CDC Group selected the consortium in the firm belief that the Consortium is best placed to take over the ownership of Globeleq and to strengthen the underlying operating businesses in North Africa and South Asia," Globeleq adviser Paul York told the lenders in a letter last week.
He added: "Our management has full confidence in the operational capabilities of the Consortium and firmly believes that they will continue to manage the business of Globeleq, including the assets in which you have an interest, in an efficient manner."
The major lenders of the Globeleq's two power plants include the Asian Development Bank, the World Bank, ANZ Grindlays and Standard Chartered Bank.
The 450 MW AES Meghnaghat-1 combined cycle power plant achieved financial closure where more than 30 international lenders and investment banks provided funds worth US$220 million to install the power plant in April 2001.
Of the total amount, the International Development Association (IDA), the soft lending arm of the World Bank, provided US$80 million, channeling the funds from the Private Sector Infrastructure Development Project (PSIDP).
The contribution of the Asian Development Bank in the power project totalled $120 million including $70 million in guaranteed loans,
According to figures available with Globeleq, Meghnaghat Power Limited collected revenues worth $387 million in the just-concluded fiscal.
On the other hand, the total revenues of Haripur Power Limited reached $230 million in the fiscal that ended in June 2007.
The Haripur and Meghnaghat facilities were originally acquired by Globeleq in December 2003. Globeleq is also a co-operator of the 113 MW natural gas-fuelled NEPC generating company in Bangladesh.
Tanjong Group, which owns and operates three gas-fired power plants in Malaysia with a total generation capacity of 1, 490 megawatt (MW), is the second largest independent power producer in Malaysia. It also has stakes in power generation companies in the United Arab Emirates and Egypt.
The company's turnover was US$ 482 million in the fiscal 2007 ending January 31.
Similarly, with its annual turnover of $888 million in 2005, Aljomaih Automotive Company is one of the largest business groups in the Gulf region and is mainly engaged in the distribution of branded products.
Globeleq, the British power company, has sold out seven of its power units set up across South Asia and North Africa, including three in Bangladesh, to Pendekar Energy Limited of Malaysia.
The British power generator owns as well as operates three power plants in Bangladesh-Meghnaghat Power Company (450 MW) and Haripur Power Company (360MW) and NEPC (113)-with a combined capacity of more than 900 MW.
Standard Chartered Bank, which acts as an inter-creditor agent, is coordinating with the lender groups to get the seal of approval for the deal under which the Malaysian consortium purchased the power plants in Bangladesh, Pakistan, Sri Lanka and Egypt for $493 million, competent sources said.
The CDC Group, through its subsidiary CDC Globeleq Holdings Limited, has recently struck an agreement to sell the entire share of Globeleq Ltd to Pendekar, a consortium of Tanjong Energy Holdings (Malaysia) and Aljomaih Automotive Company (Saudi Arabia).
"We've been asked to forward our consent of the sale to Standard Chartered within August 6," a source, whose agency provided loans for Meghnaghat plant, told the FE Sunday.
"However, we've to consult with our legal experts before giving our approval for the sale," the source pointed out.
The Globeleq is also in the process to get approval of sale from the Power Division, it is learnt.
Meanwhile, Globeleq said that the sale would not impinge on the company's Bangladesh operations as elsewhere in Pakistan, Sri Lanka and Egypt, given the Malaysian consortium's good track record.
"… CDC Group selected the consortium in the firm belief that the Consortium is best placed to take over the ownership of Globeleq and to strengthen the underlying operating businesses in North Africa and South Asia," Globeleq adviser Paul York told the lenders in a letter last week.
He added: "Our management has full confidence in the operational capabilities of the Consortium and firmly believes that they will continue to manage the business of Globeleq, including the assets in which you have an interest, in an efficient manner."
The major lenders of the Globeleq's two power plants include the Asian Development Bank, the World Bank, ANZ Grindlays and Standard Chartered Bank.
The 450 MW AES Meghnaghat-1 combined cycle power plant achieved financial closure where more than 30 international lenders and investment banks provided funds worth US$220 million to install the power plant in April 2001.
Of the total amount, the International Development Association (IDA), the soft lending arm of the World Bank, provided US$80 million, channeling the funds from the Private Sector Infrastructure Development Project (PSIDP).
The contribution of the Asian Development Bank in the power project totalled $120 million including $70 million in guaranteed loans,
According to figures available with Globeleq, Meghnaghat Power Limited collected revenues worth $387 million in the just-concluded fiscal.
On the other hand, the total revenues of Haripur Power Limited reached $230 million in the fiscal that ended in June 2007.
The Haripur and Meghnaghat facilities were originally acquired by Globeleq in December 2003. Globeleq is also a co-operator of the 113 MW natural gas-fuelled NEPC generating company in Bangladesh.
Tanjong Group, which owns and operates three gas-fired power plants in Malaysia with a total generation capacity of 1, 490 megawatt (MW), is the second largest independent power producer in Malaysia. It also has stakes in power generation companies in the United Arab Emirates and Egypt.
The company's turnover was US$ 482 million in the fiscal 2007 ending January 31.
Similarly, with its annual turnover of $888 million in 2005, Aljomaih Automotive Company is one of the largest business groups in the Gulf region and is mainly engaged in the distribution of branded products.