23 October 2003 – Japan’s Marubeni Corp. announced Wednesday that it will acquire a substantial stake in the Asian affiliate of U.S. independent power producer Sithe Energies Inc.
Marubeni will sell its 15 per cent stake in Sithe Energies to Chicago-based electric utility Excelon Corp. and in return acquire Sithe’s 44 per cent interest in Sithe Asia, a company with power plants in seven Asian countries, including South Korea and the Philippines.
The value of Marubeni’s transaction with Excelon has not been publicized, but the Japanese trading house is expected to take 6 billion yen in extraordinary charges for the interim period ended Sept. 30.
With this exchange, Marubeni will divest itself of all holdings in Sithe Energies. It expects to acquire the other outstanding shares in Sithe Asia and turn that company into a wholly owned subsidiary before the fiscal year-end.
With this new asset, Marubeni intends to bolster its IPP operations in Asia, where demand for electric power is growing