And Mine to International Consortium
JACKSON, Mich., July 3 /PRNewswire-FirstCall/ -- CMS Energy (NYSE: CMS)
announced today that it and its partners have reached a conditional agreement
to sell the 2,000-megawatt Loy Yang power plant and adjacent coal mine in
Australia to an international consortium for about $3.5 billion Australian
(approximately $2.4 billion in U.S. dollars), including $165 million
Australian for the project equity.
CMS Energy owns 49.6 percent of the Loy Yang project. NRG Energy Inc. and
Horizon Energy Australia Investments each own approximately a 25 percent
share. Net proceeds to CMS Energy for its equity share are subject to closing
adjustments and transaction costs.
The Great Energy Alliance Corporation (GEAC) was formed earlier this year
by the Australian Gas Light Company (AGL), the Tokyo Electric Power Company,
Inc. (TEPCO), and a group of financial investors led by the Commonwealth Bank
of Australia to explore the possible acquisition of Loy Yang.
The conditions to completion of the sale include consents from Loy Yang's
financiers to a restructuring of the project's debt, satisfactory resolution
of regulatory issues and approvals, rulings on tax and stamp duty obligations,
as well as approvals from the investors in Horizon Energy and the creditors
committee of NRG Energy.
The sales agreement guarantees GEAC a period of exclusivity while the
conditions of the purchase are satisfied. The signing of the agreement allows
GEAC to begin discussions with Loy Yang's financiers to pursue a debt
The brown coal-fired plant is the largest generator in Victoria,
Australia, accounting for about 24 percent of the state's electricity
generation. The CMS-led partnership bought the complex for $3.8 billion in
1997 as Australia privatized its electric industry.
CMS Energy is an integrated energy company, which has as its primary
business operations an electric and natural gas utility, natural gas pipeline
systems and independent power generation.
For more information on CMS Energy, please visit our web site at:
This news release contains "forward-looking statements" within the meaning
of the safe harbor provisions of the federal securities laws. It should be
read in conjunction with the forward-looking statements cautionary factors in
CMS Energy's Securities and Exchange Commission filings that identify
important factors that could cause CMS Energy's results to differ materially
from those anticipated in such statements.
SOURCE CMS Energy Corporation
/CONTACT: Media Contacts: Jeff Holyfield, +1-517-788-2394, or Dan Bishop,
+1-517-788-2395, both of CMS Energy Corporation, or Investment Analyst
Contact: CMS Energy Investor Relations, +1-517-788-2590/
/Web site: http://www.cmsenergy.com /
CO: CMS Energy Corporation; Loy Yang; NRG Energy Inc.; Horizon Energy
Australia Investments; Great Energy Alliance Corporation; Australian Gas
Light Company; Tokyo Electric Power Company, Inc.; Commonwealth Bank of
ST: Michigan, Australia
IN: OIL UTI MNG
-0- Jul/03/2003 15:02 GMT
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