Gas Natural Heard Selling Mexico Power Pack

Spain’s Gas Natural is heard to be selling a collection of Mexican assets acquired from France’s EDF 2 years ago. Consortia are teaming up to bid on the bundle of power assets that LatAm bankers say is worth over $1bn. Gas Natural acquired the package, which includes 5 combined-cycle gas-fired plants totaling 2,233MW, the operating company Comego, and the 53km Gasoducto del Rio pipeline, for $1.45bn in October 2007. The deal was financed through debt, with JPMorgan advising Gas Natural and UBS helping EDF. Gas Natural, which earlier this year merged with Union Fenosa, is heard to be divesting the Mexico assets to rebalance its portfolio. It acquired a preponderance of Mexico-based assets through the merger, say bankers. Several international bidders from Asia and Europe are understood to be preparing bids. Other bidders heard eyeing the assets 2 years ago when EDF sold to Gas Natural are Suez Energy, Mitsui, and a joint venture between Marubeni and London-based International Power. The ideal purchaser would be a consortium including a combination of financial and strategic operators, says a Mexico-based banker familiar with the situation. The package is expected to be auctioned soon, but the sale process is heard to have hit a snag from Gas Natural’s side, which needs to be sorted out before the process continues. Executives eyeing the process have suggested Gas Natural may not be hiring an advisor for the sale. The plants are called Saltillo, Altamira 2, Rio Bravo 2, Rio Bravo 3, Rio Bravo 4, according to local press reports at the time of the sale in 2007.