Enron Announces Proposed Sale of Prisma Energy International Inc.
Houston, TX – Enron Corp. announced today that Ashmore Energy International Limited (“Ashmore Energy”), which is majority-owned by funds managed by Ashmore Investment Management Ltd. (“Ashmore”), has agreed to acquire Prisma Energy International Inc. (“Prisma Energy”), a wholly-owned subsidiary of Enron in a two-stage transaction (the “Transaction”). The realizable value to Enron from Prisma Energy during 2006 is expected to be approximately $2.9 billion, which includes approximately $800 million in cash dividends received earlier in 2006 by Enron from Prisma Energy.
“We are pleased that the expected value is over three times greater than the estimated value of Prisma Energy contained in the disclosure statement filed with Enron’s Bankruptcy Plan, and is a substantial benefit to the Enron creditors,” said John J. Ray III, Enron’s President and Board Chairman.
The first stage of the Transaction closed today, with Ashmore Energy acquiring an equity stake in Prisma Energy, initially representing just less than 25% of the aggregate voting interest. Ashmore Energy’s purchase of the remaining equity interest in Prisma Energy will be consummated only after certain required consents and regulatory approvals have been obtained, which is expected to occur later this year. Prior to entering into the Transaction, Prisma Energy transferred to Enron a majority of Prisma Energy’s interest in the Promigas business in Colombia, which is expected to be subject to a separate auction process after the closing of the second stage of the Transaction.
“We appreciate the substantial effort that Enron and Prisma Energy personnel put into this transaction. The Transaction represents an enormous milestone for the Enron Estate,” Ray concluded. Prisma Energy is the last of the three major platform entities under the Bankruptcy Plan to be distributed to Enron’s creditors or sold.
Enron is represented by The Blackstone Group, as investment bankers, and Milbank Tweed Hadley & McCloy, as legal counsel.
Enron’s Internet address is http://www.enron.com/.
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CAUTIONARY STATEMENT: Certain statements contained in this press release are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and other statements that are other than statements of historical facts. Forward-looking statements are based on the opinions and estimates of management at the time the statements are made and are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements herein include, but are not limited to, political developments affecting federal and state regulatory agencies, and developments with respect to the bankruptcy of Enron. Except as required by law, Enron does not undertake any obligation to update any forward-looking statements.
Ashmore launched Ashmore Energy at the beginning of the year with the contribution of 5 gas and electric, transmission, and distribution companies owned by its funds. Ashmore Energy’s aim is to deliver quality service to its customers and contribute to the continued expansion and upgrading of the energy systems of the countries in which it operates.