Aboitiz Group seeks foreign partner for Mirant bidding

Aboitiz Equity Ventures (AEV) is seeking a partnership with a foreign group to bid for the generating assets of Mirant Philippines Inc.

In an interview with reporters Thursday night, AEV chief operating officer Erramon Aboitiz said they are in talks with several foreign firms for a possible partnership.

"We’re talking to four to five foreign groups for Mirant (assets) but we’re more focused on the privatization of Napocor (National Power Corp.) assets like hydro," Aboitiz said.

Declining to identify the possible partners, Aboitiz said they are holding exploratory discussions with groups from the US, Asia and Europe.

Aboitiz acknowledged that they would need a partner to be able to participate in the bidding of $3 billion worth of Mirant assets.

Mirant’s assets in the country include its interest in three generating power plants, namely Pagbilao, Sual and Ilijan. Its net ownership interest in these three generating facilities stands at 2,203 megawatts (MW).

Mirant is expecting proceeds of about $2.4 billion to $2.8 billion from the sale.

"We have not decided who we will partner with or whether we will pursue our bid. We’re more concerned about the impending privatization of Pantabangan and Masiway hydropower plants," Aboitiz said.

He said they are specifically looking for a partner with expertise in running coal-fired power facilities and should have "deep pockets and access to cheap money."

But Aboitiz said they are still waiting for the resolution of issues confronting the sale of Mirant Philippines before pursuing their bid for the assets.

"There are many interested investors that are seeking clarification on the issues and assurance from Mirant that these issues are resolved before the final bid. Otherwise, you’re inheriting the problem," Aboitiz said.

Mirant was subjected to a congressional inquiry due to alleged non-payment of appropriate taxes to the government.