Tokyo, Dec 1, 2008 - (ACN Newswire) - Marubeni Corporation has concluded the Share Purchase Agreement acquires 21.42% shares of Hsin Tao Power Corporation through Taiwan Top Power Holdings. Co., Ltd., which is the holding company 100% owned by Marubeni. Hsin Tao Power, located in Hsin Chu prefecture, a north part in Taiwan, runs power sale for Taiwan Power Company ("TPC"). The total purchase price is approx. US$ 77 million (equivalent to JPY 7.7 billion), and US$34 million (equivalent to JPY 3.4 billion) has been funded by the syndicate loan from Taiwanese Lenders, lead arranged by China Development Industrial Bank ("CDIB").
Marubeni acquires in aggregate of 21.42% shares of Hsin Tao Power, 15.95% shares from CDIB, 2.07% shares from TSRC Corporation, 1.70% shares from Fubon Insurance Co., Ltd and 1.70% shares from Fubon Life Assurance Co., Ltd.
Because of the tight supply-demand situation of electricity in Taiwan, TPC invited the 2st round IPP bid in 1995, and Ever Green Group, one of the major corporation group in Taiwan, has developed, this project, which contained total 600MW LNG- fired combine cycle power plant constructed and operated initially. Because of its steady operation and stable profit with having 25 years long term Power Purchase Agreement with TPC, Marubeni has decided to acquire the shares in Hsin Tao Power through the direct negotiation with each Seller.
Marubeni envisions Overseas IPP Investment as one of the core growing business fields and has been active in growing strong global IPP asset portfolio, and became holding gross capacity of 23,604MW and net capacity (with prorate its ownership percentage) of 7,445MW as the result of this acquisition. In the Taiwanese market, Marubeni becomes holding net capacity of 513MW through this investment in Taiwanese IPP Business, subsequently to first investment as the acquisition of 40% shares of Ever Power IPP Co., Ltd in Jan. 2008, and the Taiwanese portfolio becomes 3rd largest in our Asian IPP market followed by Philippines and Singapore.
In Taiwan, IPP projects have been playing very important role to support TPC's stable electricity supply. Marubeni does hope to expand IPP business in Taiwan as one of the core market in Asia-Pacific, and will work on the IPP project aggressively and wish to contribute the supply of the electricity in Taiwan.
About Hsin Tao Power Corporation
Hsin Tao Power CorporationTaipower Village, Lin 5, Jen-an Li, Kuan-His Town, Hsin-Chu County, Taiwan, R.O.C.
Establishment: Jun. 16, 1998 Outline of Business: Power Sales under the BOO scheme for 25 years for TPC
Assets: LNG fired combined cycle power plant made by GE with its capacity at 600MW
Commercial Operation: May, 2002
About Marubeni
Marubeni Corporation (TSE: 8002; ADR: MARUY) was established in 1858, and is a core company of Marubeni Group, one of Japan's leading general trading houses. Operations encompass domestic import, export and offshore trade. Activities range from the development of natural resources to the retailed marketing of finished products. For the past several years, the Marubeni Group has been establishing and enhancing its worldwide information and communication business. The Marubeni Group focuses on creating "value chain" from upstream to downstream, encompassing a wide variety of business fields, including oil & gas, metals, mineral resources, foods, pulp & paper and chemicals, among others. For more information, please visit www.marubeni.com .
Source: Marubeni
Contact:
Copyright 2008 ACN Newswire. All rights reserved. www.acnnewswire.com
Marubeni acquires in aggregate of 21.42% shares of Hsin Tao Power, 15.95% shares from CDIB, 2.07% shares from TSRC Corporation, 1.70% shares from Fubon Insurance Co., Ltd and 1.70% shares from Fubon Life Assurance Co., Ltd.
Because of the tight supply-demand situation of electricity in Taiwan, TPC invited the 2st round IPP bid in 1995, and Ever Green Group, one of the major corporation group in Taiwan, has developed, this project, which contained total 600MW LNG- fired combine cycle power plant constructed and operated initially. Because of its steady operation and stable profit with having 25 years long term Power Purchase Agreement with TPC, Marubeni has decided to acquire the shares in Hsin Tao Power through the direct negotiation with each Seller.
Marubeni envisions Overseas IPP Investment as one of the core growing business fields and has been active in growing strong global IPP asset portfolio, and became holding gross capacity of 23,604MW and net capacity (with prorate its ownership percentage) of 7,445MW as the result of this acquisition. In the Taiwanese market, Marubeni becomes holding net capacity of 513MW through this investment in Taiwanese IPP Business, subsequently to first investment as the acquisition of 40% shares of Ever Power IPP Co., Ltd in Jan. 2008, and the Taiwanese portfolio becomes 3rd largest in our Asian IPP market followed by Philippines and Singapore.
In Taiwan, IPP projects have been playing very important role to support TPC's stable electricity supply. Marubeni does hope to expand IPP business in Taiwan as one of the core market in Asia-Pacific, and will work on the IPP project aggressively and wish to contribute the supply of the electricity in Taiwan.
About Hsin Tao Power Corporation
Hsin Tao Power CorporationTaipower Village, Lin 5, Jen-an Li, Kuan-His Town, Hsin-Chu County, Taiwan, R.O.C.
Establishment: Jun. 16, 1998 Outline of Business: Power Sales under the BOO scheme for 25 years for TPC
Assets: LNG fired combined cycle power plant made by GE with its capacity at 600MW
Commercial Operation: May, 2002
About Marubeni
Marubeni Corporation (TSE: 8002; ADR: MARUY) was established in 1858, and is a core company of Marubeni Group, one of Japan's leading general trading houses. Operations encompass domestic import, export and offshore trade. Activities range from the development of natural resources to the retailed marketing of finished products. For the past several years, the Marubeni Group has been establishing and enhancing its worldwide information and communication business. The Marubeni Group focuses on creating "value chain" from upstream to downstream, encompassing a wide variety of business fields, including oil & gas, metals, mineral resources, foods, pulp & paper and chemicals, among others. For more information, please visit www.marubeni.com .
Source: Marubeni
Contact:
Marubeni Corporation Corporate Communications & Investor Relations Department Tel: +81-3-3282-2420 Fax: +81-3-3282-7166
Copyright 2008 ACN Newswire. All rights reserved. www.acnnewswire.com
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