arcapita completes $695 million acquisition of 800mw us power generation facility.arcapita completes $695 million acquisition of 800mw us power generation facilityArcapita Bank B.S.C.(c), a leading international investment firm headquartered in Bahrain, today announced that it and its affiliates have completed the acquisition of the Bosque power generation facility located in Texas, United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , for a total transaction value of $695 million. This is Arcapita's largest asset-based investment in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. to date, and means that Arcapita has now completed deals with a total transaction value of over $22.5 billion.Located in Laguna Park, Texas, the Bosque facility commenced operations in 2002 as a natural gas fired power plant, and is currently undergoing conversion to a more efficient combined cycle A combined cycle is characteristic of a power producing engine or plant that employs more than one thermodynamic cycle. Heat engines are only able to use a portion of the energy their fuel generates (usually less than 50%). The remaining heat from combustion is generally wasted. facility with a capacity of over 800 megawatts. Bosque sells its energy and ancillary services into the Texas power market, where increasing demand is leading to tightening reserve margins. Commenting on the transaction, Atif Abdulmalik, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Arcapita, said: "During the last quarter, we realized over $1 billion as we exited from two previous asset-based investments, delivering greater than expected returns Expected Return The average of a probability distribution of possible returns, calculated by using the following formula: to investors. With its mix of capital growth and income yield, this remains an important asset class for our investors, and we are pleased with the addition of Bosque into the portfolio. It is an attractive generation asset in a power market experiencing a growing demand for clean, efficient power, and we believe the investment offers our investors access to high quality, risk-adjusted returns." The Bosque facility will be managed by Fulcrum fulcrum: see lever. Power Services L.P., an experienced energy management services company with a strong existing relationship with the Bosque management and detailed knowledge of its operating history. Asim Zafar, Arcapita's Head of Asset-Based Investment, said, "The Texas power market enjoys strong and growing demand for electricity, and Bosque has an excellent operating history of consistent maintenance and capital improvements. The upgrade to combined cycle technology further improves the supply economics for the facility. In addition, Fulcrum's proven asset management capabilities and expertise in the Texas power market will serve to enhance the cash flows generated by the facility." The acquisition is Arcapita's largest US asset-based investment and follows recent transactions such as the $369 million acquisition of Varel Holdings, Inc., the world's fastest growing manufacturer of drill bits, and the $4.2 billion acquisition of Viridian Group Viridian Group plc is a Northern Ireland-based energy business with interests in both Northern Ireland and the Republic of Ireland. Viridian owns Northern Ireland Electricity (NIE), Viridian Power & Energy, Energia, Huntstown and Powerteam. plc, the Northern Ireland electricity Northern Ireland Electricity plc (NIE) is the electricity transmission company in Northern Ireland. NIE does not generate electricity but purchases it from several power stations in Northern Ireland, as well as interconnectors with the Republic of Ireland and Scotland. utility. [c] 2008 Al Bawaba (www.albawaba.com) |
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