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Mirant Sells Caribbean Business

The deal is valued at $1.08 billon.
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Energy producer

Mirant

(MIR)

agreed to sell its Caribbean business to Japan's Marubeni Corp. in a deal valued at about $1.08 billion.

Atlanta-based Mirant said Wednesday that it expects to receive proceeds of $565 million from the sale. The deal calls for Marubeni to assume $350 million in debt and power purchase obligations of about $153 million.

Mirant's Caribbean business includes controlling interests in two utilities: Jamaica Public Service Company, of which Mirant owns 80%, and Grand Bahama Power Company, of which Mirant owns 55%. Mirant also owns 39% of PowerGen, the owner and operator of three power plants in Trinidad, and 25% of a utility in Curacao.

The transaction is expected to close by mid-2007.