International Power to sell all Czech operations for net profit of £380 mln

International Power PLC (LSE: IPR) said it signed an agreement for the sale of its entire Czech business to the Czech-Slovak investment firm J&T Group for an enterprise value of £738.3 million.

The sale comprises the wholly-owned Czech subsidiary International Power Opatovice (IPO), as well as IPO's interests in its subsidiaries Pražská Teplárenská (PT) and Energotrans (ET).

The business will be sold with existing project level debt, and International Power will make a net profit on the sale of some £380 million. Completion is expected by the end of 2009.

IPO owns and operates the 363MegaWatt Opatovice coal-fired combined heat and power plant, located to the east of Prague. IPO also owns 49 percent of PT, a district heating business, which in turn owns 100 percent of ET, the 352MW combined heat and power plant which is PT's primary heat supplier.

Philip Cox, chief executive of International Power, said: “Following significant interest from a number of parties we have agreed a sale of our Czech business. The attractive sale price, combined with the limited scope to materially expand our business in the Czech Republic, means that this transaction represents excellent value for International Power and its shareholders.”

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