Princeton, NJ, June 12, 2006 — NRG Energy Inc. announced an agreement to sell its 37.5% equity interest in the Gladstone power station, and its associated 100% owned NRG Gladstone Operating Services company, to Transfield Services, an Australia-based provider of operations, maintenance, ownership and asset management services.
The Gladstone announcement comes after NRG’s announcement that the company plans to sell the Flinders power station to Babcock and Brown.
The Gladstone purchase price is approximately $179 million, subject to customary purchase price adjustments, plus the assumption of NRG’s share of Gladstone’s unconsolidated debt and cash amounting to approximately $58 million, and approximately $26 million, respectively. After tax cash proceeds are expected to be in excess of $176 million.
Located in Queensland, Australia, Gladstone power station is a coal-fueled power station with 1,680 gross megawatts (MW) of generating capacity. The sale of Gladstone is subject to customary approvals, as well as consents from the other owners of the project, and is expected to close during the third quarter.
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