A unit of

Calpine

(CPN)

agreed to sell its 1,200-megawatt Saltend Energy Centre for $906 million, plus adjustments for working capital expected to be about $19 million.

Saltend is a natural gas-fired, cogeneration power plant located in Hull, England. Calpine is selling the Saltend power plant to a partnership between

TheStreet Recommends

International Power PLC

and

Mitsui & Co.

Calpine expects to close the sale in late July.

Calpine acquired the Saltend power plant in August 2001 for $810 million. The power company plans to use the net proceeds from the sale of the Saltend Energy Centre to redeem two existing series of redeemable preferred shares for about $620 million.

Shares of Calpine were up 40 cents, or 15%, to $3.10 in premarket trading Tuesday.