2 June 2006 — NRG Energy, Inc. has entered into a Sale & Purchase Agreement to sell its 100% owned Flinders power station and related assets, located near Port Augusta, Australia, to Babcock & Brown Power Pty, a subsidiary of Babcock & Brown.
Flinders consists of two coal-fueled plants Northern and Playford totaling 760 MW, which, according to Reuters, represents 50 percent of capacity in South Australia state. The purchase price is $238 million, subject to customary purchase price adjustments, plus the assumption of $179 million of non-recourse debt obligations and $31 million in cash.
The sale is subject to customary approvals, including various third party approvals. NRG anticipates closing the transaction during the third quarter.