International Power reshapes portfolio

International Power, the UK power generator which is 70% owned by French utility GDF SUEZ, has entered into two separate sale and purchase agreements.

The company is selling its total shareholding of 17.4% in the Hub Power Company for a total of around €51m. The operations and maintenance for the Hub plant will continue to be carried out by an International Power subsidiary.

Meanwhile, the firm is acquiring an additional 20.1% of Uch 1, taking the group's holding up to 94.6%. The gross assets value of Uch 1 as at December 31st was €357m.

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"These transactions represent optimisation of our portfolio, where the sale of Hubco offers an attractive return and the additional interest in Uch 1 will result in an increased ability to maximise synergies between the two adjacent Uch plants," the company said.

The share price rose 2.31% to 381.40p.

NR