French utility GDF Suez has sold a 40 percent stake in Bahrain’s Al Hidd Power Company to Malaysia’s Malakoff for €87.6m (US$112.8m), the firm has said.
The sale is part of a regulatory requirement following GDF’s acquisition of International Power which boosted its stake in the Bahraini plant to 70 percent. Bahrain’s government wanted GDF to reduce the stake to prevent the concentration of ownership.
“This transaction is in line with International Power’s agreement to sell down part of its interest in the Bahraini power market to comply with regulatory requirements following the combination with GDF Suez Energy International in February 2011,” the firm said in a statement on its website.
“In addition to regulatory compliance, this transaction also contributes €0.6bn to the GDF Suez €10bn portfolio optimisation programme,” it added.
International Power will continue to own a 30 percent stake in Al Hidd Power Company, said GDF.
Al Hidd power plant, which has a total capacity of 929MW and 90 MIGD of water desalination, provides around 39 percent of the Gulf state’s power requirement and 62 percent of its water needs.
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