By MYRNA M. VELASCO
The Japanese consortium of Marubeni Corp./Tokyo Electric Power Co. (TEPCO) appeared over the weekend to have bagged the power assets of Mirant Corp. in the Philippines with its hiked bid of $ 3.0 billion which prompted the other bidder, One Energy group, to pull out from the auction after failing to match the price offer of the former.
Sources from Singapore confirmed that One Energy, a joint venture of Mitsubishi Corporation and China Light & Power Company, "did not show up at the scheduled deadline for it to increase its price offer." Instead, the information sent to Mirant sale advisor Credit Suisse was that they intended to pull out from the extended negotiations.
Credit Suisse has been zeroing in negotiations with the top two bidders – Marubeni/TEPCO and One Energy in the past few days, primarily on the commercial conditions set forth in their respective bids.
This has not prevented them however from pursuing simultaneous talks with the other top bidders, like the group of Mitsui Corporation and UK firm International Power; as well as Korea Electric Power Corporation and partner French firm Suez SA.
When checked with sources from Tokyo who are privy to the ongoing extended negotiations, they disclosed that Mirant indeed asked the bidders to jack up their purchase offers because there is a price range committed to its stockholders that shall be raised from the sale.
"The bidders were asked to increase their price offers, but there are concerns that have to be resolved with the lenders," a highly-reliable source said.
In Singapore, it was bared that the bidders were asked to stay in one hotel for the extended negotiations; and Credit Suisse officials have been hopping from one room to another where the bidders are to conclude their preferred terms in the sale transaction.
The bidders previously sounded off that they have a hard time keeping up with the $ 3.0 billion or higher price range being sought by Mirant because of the many concerns and issues that weighed down on valuation of its Philippine assets.
"Certainly, Marubeni and Tokyo Electric are brave souls to agree to a higher price," they stressed.
The $ 3.0-billion firm price offer is based on the Philippine assets’ enterprise value, which means that the outstanding debts of Mirant Philippines, including the $ 700-million recapitalization secured last year, would have to be deducted from it.
|
