Mirant selling Caribbean business to Marubeni Corp.

<p>Energy provider Mirant Corp. said Wednesday it has reached a deal to sell its Caribbean business to a subsidiary of Marubeni Corp. for $1.08 billion.</p><p>The sale price includes debt of roughly $350 million, power purchase obligations of about $153 million and estimated working capital at closing.</p><p>Atlanta-based Mirant said its net proceeds from the sale are expected to be about $565 million after payment of transaction costs estimated to be about $14 million.</p><p>The deal is expected to close within the next few months.</p><p>Mirant's Caribbean business includes controlling interests in two integrated utilities: Jamaica Public Service Co., of which Mirant owns 80 percent, and Grand Bahama Power Co., of which Mirant owns 55 percent.</p><p>Mirant also owns 39 percent of PowerGen, the owner and operator of three power plants in Trinidad, 25 percent of Curacao Utilities Co., which provides electricity and other utility services, and a $40 million convertible preferred equity interest in Aqualectra, an integrated water and electric company in Curacao.</p><p>News of the deal follows Mirant's disclosure earlier this month that it was considering a possible sale or merger of the entire company and other moves to boost the power provider's value for shareholders.</p><p>Mirant filed for bankruptcy on July 14, 2003 in Fort Worth, Texas. It emerged from Chapter 11 protection in January after reducing its work force, shaving billions from its rolls and appointing a new chief executive.</p><p>___</p><p>On the Net:</p><p>HASH(0x1cd9c14)</p>