Business & Finance
Business and Finance
Business and Finance
Wed, February 25, 2009 NRG Energy, Inc. to Sell Its Ownership Interest in MIBRAG
PRINCETON, N.J.--([ BUSINESS WIRE ])--NRG Energy, Inc. (NYSE: NRG) has entered into an agreement to sell its 50% ownership interest in Mibrag B.V. to a consortium of Severočeské doly Chomutov, the largest brown coal mining company in the Czech Republic and member of the CEZ Group, and J&T Group, a Czech Republic-based investment company. Mibrag B.V.'s principal holding is Mitteldeutsche Braunkohlengesellschaft mbH (MIBRAG), an integrated coal mining and power generating business located in central Germany.
"MIBRAG has been a solid performing business within our legacy portfolio over the past several years," said David Crane, NRG President and CEO. "However, our focus has been to exit our international holdings in order to redeploy our capital into our primary domestic markets and thereby further leverage the scale and value of our core operations. I want to thank the dedicated men and women of MIBRAG for their years of excellent service."
MIBRAG, jointly owned by NRG and URS Corporation, primarily comprises two lignite mines (Schleenhain and Profen) and three combined heat and power stations (Mumsdorf, Deuben and Wählitz). As part of the transaction, URS also has entered into an agreement to sell its 50% stake in MIBRAG.
The purchase price for 100% of MIBRAG is EUR 404 million, or approximately USD 519 million assuming yesterday's euro to dollar conversion rate of 1.285. For its share, NRG is receiving EUR 202 million, or approximately USD 259 million assuming this same conversion rate. The transaction is subject to customary closing conditions, including European Commission regulatory approvals, and proceeds are subject to adjustments including transaction costs. It is expected to close during the second quarter of this year.
NRG continues to maintain its 41.9% interest in Schkopau, a 900 megawatt coal-fueled power station located near Halle, Germany, which obtains its fuel supply under a long-term contract from MIBRAG's Profen mine.
About NRG Energy
NRG Energy, Inc., a Fortune 500 company, owns and operates one of the country's largest and most diverse power generation portfolios. NRG's 50 plants provide approximately 24,000 megawatts of generation capacity—enough to power nearly 20 million homes. In November 2007, NRG won two of the industry's highest honors—Platts Industry Leadership and Energy Company of the Year awards. Headquartered in Princeton, NJ, NRG is a member of the U.S. Climate Action Partnership (USCAP), a group of business and environmental organizations calling for mandatory legislation to reduce greenhouse gas emissions. More information is available at [ www.nrgenergy.com ].
Safe Harbor
Certain statements included in this news release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements above include the expected timing of the MIBRAG transaction. Although NRG believes that its expectations are reasonable, it can give no assurance that these expectations will prove to have been correct. Factors that could cause NRG's actual results to differ materially from those contemplated in the forward-looking statements above include, among others, closing conditions, regulatory approvals and applicable foreign exchange rates.
NRG undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The foregoing review of factors that could cause NRG's actual results to differ materially from those contemplated in the forward-looking statements included in this news release should not be construed as exhaustive. For more information regarding risks and uncertainties that may affect NRG's future results, review NRG's filings with the Securities and Exchange Commission at [ www.sec.gov ].
