NEL, BP seal deal on PowerGen
Publicly traded company National Enterprises Ltd (NEL) has confirmed that it closed an agreement with United Kingdom-based energy giant BP effective December 18 to purchase BP’s ten per cent shareholding in power company PowerGen.
The Express reported exclusively the sale to NEL last Saturday.
In a statement NEL confirmed it has purchased a BP company called Amoco Trinidad Power Resources Corporation (ATPRC) which held the ten per cent shareholding in PowerGen as its only asset and transferred the assets of this company into a newly formed subsidiary of NEL called NEL Power Holdings Ltd (NPHL).
The Unit Trust Corporation was invited to participate in the purchase and will acquire ten per cent of NPHL for its Growth and Income Fund, NEL said.
“After a through financial, legal and technical review of ATPRC and PowerGen itself, NEL and BP negotiated a Sales and Purchase agreement on terms and a purchase price acceptable to both parties. PWC was NEL’s financial adviser and LEX Caribbean Ltd was the legal adviser on this transaction,” the NEL statement said.
Chairman of NEL Kenny Lue Chee Lip stated: “Since this current NEL board was appointed in 2011, the board has been looking to increase shareholders’ value by expanding its portfolio of investee companies. In order to do so, it has been seeking investments in mature, stable and profitable companies. PowerGen clearly fits this profile and we are happy that the transaction with BP has been concluded. This purchase shows that NEL intends to be more active in managing its portfolio of investments and seeking to expand and diversify its holdings.”
Minister of Finance Larry Howai also commented on the purchase: “This purchase shows our interest in allowing NEL to diversify further its portfolio of investee companies so as to redound to the benefit of its shareholders which includes over 5,000 citizens of Trinidad and Tobago. It also further shows this government’s interest in sharing with citizens through NEL, the profit derived from use of the country’s natural resources.”
In keeping with the regulatory and legal requirements of Trinidad and Tobago, the Stock Exchange (T&TSE) and the Securities Exchange Commission (T&TSEC) have been advised of this transaction, NEL said.
NEL is a publicly trading company that is majority owned by the government. It was formed in 2001 as an investment holding company.
Its portfolio of investee companies includes TSTT, NFM, Tringen, NGC NGL and NGC LNG.