May 7, 2002 – US power group Mirant continued its process of asset realisation today when it announced the sale of its stake in Shandong International Power Development Company Limited (SIPD), located in the Shandong province of China, for $115m.
Mirant’s 525,083,000 H shares represent 9.99 per cent of the total issued share capital of SIPD and 36.69 per cent of the total H shares issued by SIPD. H shares are shares issued by a company based in China and listed on the Hong Kong stock exchange.
Mirant initially acquired the H shares at the IPO of SIPD in 1999. Since that time, Mirant said it has received approximately $34m in dividends in total.
“The sale of our SIPD stake is another step in strengthening our balance sheet and improving liquidity,” said Rick Kuester, senior vice president of Mirant’s International operations. “SIPD was a profitable investment for Mirant and the sale brings us closer to our target of $1.6bn in asset sales.”
In January Mirant announced a rationalisation of its European operations and in February sold its interest in German utility Bewag.