NRG Energy sells interest in German coal-fired plant
NRG Energy sold its minority ownership interest in Schkopau, the 900 MW (400 MW net to NRG) coal-fueled power station near Halle, Germany
Princeton, N.J., July 17, 2012 — NRG Energy sold its minority ownership interest in Schkopau, the 900 MW (400 MW net to NRG) coal-fueled power station near Halle, Germany.
Schkopau is jointly owned by NRG and German partner E.ON Kraftwerke GmbH. SEG owns 41.9 percent of Kraftwerk Schkopau GbR (the plant) and 44.4 percent of Kraftwerk Schkopau Betriebsgesellschaft mbH (the plant's operating company). EPH is purchasing 100 percent of SEG from NRG. With the sale of Schkopau, NRG fully exits the European market.
EPH also acquired MIBRAG, an integrated coal mining and power generating business, from NRG in 2009. MIBRAG's Profen mine contractually supplies the lignite coal to Schkopau.
The purchase price paid by EPH was about $173.14 million. After taking into account fees, foreign exchange costs and other transaction expenses, NRG expects to be able to repatriate about USD 174 million in net proceeds prior to the end of 2012. The net proceeds received by NRG arising out of this transaction increase its restricted payment availability under its senior notes and credit facility by an equivalent amount. Deutsche Bank served as financial advisor to NRG.