Atlanta, US-based power company Mirant (MIRKQ) has issued a statement clarifying remarks concerning the potential IPO of a small portion of its Philippine operations.
The company said the initial public offering (IPO) of part of the business is not a new development and has been the subject of previous public comment in both the Philippines and the US.
Mirant said it remains committed to do the IPO, as required under the Philippines’ Electric Power Industry Reform Act (EPIRA), once certain conditions and factors have been addressed.
However, it said it does not anticipate an IPO in 2004 and cannot determine at what point after 2004 such an IPO would be feasible.
The company issued the statement in response to a recent comment made byEd Bautista, president of its Philippine operations, on the potential IPO. He had said it would raise approximately $325 million.
Mirant’s head office said those valuations are outdated and the company would not be able to provide new financial data until an in-depth evaluation occurs.
The company said in a statement: “The delayed deregulation of the Philippine energy market and the privatisation of the Philippine National Power Corporation are two fundamental events that would need to be completed before the Company would begin to conduct a detailed evaluation.
“Many factors affect the valuation of a potential securities offering, some of which include market conditions in the industry, current financial results of the issuing company, perceived financial prospects for the issuing company and securities market demand.”
While the company said it could not yet determine the amount that would be offered to the public, it would consider offering approximately 10% of shareholdings as mandated by EPIRA, subject to the appropriate conditions.
Mirant produces and sells electricity in North America, the Caribbean and the Philippines. It owns or controls more than 22,000 megawatts of electric generating capacity globally.