Japan's Marubeni selling stake in Australian power plant

Marubeni Corp. is seeking a buyer for its 30% stake in the Millmerran Power Station in Queensland, Australia.

Millmerran, which generated its first electricity in 2003, has 850 megawatts of capacity and supplies power to around 1.1 million homes.

The power plant and its associated Commodore coal mine cost 1.5 billion Australian dollars (US$1.56 billion) to develop, which gives Marubeni’s stake an enterprise value of A$450 million including debt. The power station sells all its electricity into Australia’s National Electricity Market.

It marks the second major sales process of an Australian power asset by a Japanese company in as many years.

In February last year Tokyo Electric Power Co. sold its interest in the Loy Yang A power station in Victoria state to AGL Energy Ltd.

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