Edison wants to sell its stake in Paiton for $124 million

The American energy company Edison Mission Energy is planning to sell its 40 stake in PT Paiton Energy to a British company for US$124 million, the Koran Tempo newspaper reported in its Tuesday edition.

The information obtained by the Koran Tempo reveals that a British company, CDC Globaleq has expressed its interest to buy 40 percent of shares of PT Paiton Energy from Edison Mission Energy. The transaction will be carried out soon through tender process.

Besides Paiton, the American company also wants to sell its majority stake in Caliraya-Botokan-Kalayan power plant in the Philippines and Tri-Energy Company Limited in Thailand.

CDC Globaleq is currently considering the Edison Mission?s offer. It is examining the market potential of power in Southeast Asia.

Edison Mission has 40 percent stake in Paiton, Mitsui Corp. 32. percent, GE Capital 12.5 percent and PT Batu Hitam Perkasa 15 percent.

The 2x615 megawatts (MW) coal-fired power plant, which is known as Paiton I, is located at Probolinggo in East Java.

Paiton Energy president director Ronals Landry couldn?t be reached for comment on Monday, the newspaper said.(*)