Thursday, August 12, 2004 Kepco signs deal, shows interest in buying 30-40% stake in Salcon
KEPCO Philippines Corp. has signed a memorandum of understanding in line with its intention to acquire 30-40 percent of the capital stock of Salcon Power Corp. (SPC).
Salcon told the stock exchange that Kepco will immediately conduct a technical, financial and legal due diligence on SPC.
Kephilco is an independent power producer operating the 650 MW Malaya Power Complex in Rizal province on a rehabilitation-operation-maintenance-and-management basis with the National Power Corp.
It is a wholly owned subsidiary of Korea Electric Power Corp. (Kepco), which is engaged in the generation and distribution of power in Korea.
Salcon Power has a 15-year contract with National Power Corp. to rehabilitate, operate and manage Napocor’s power plant in Cebu.
Salcon Power is 53.7 percent owned by Salcon Philippines Inc., a Philippine subsidiary of Salcon Ltd. of Singapore.
Last June, Kepco chairman and chief executive officer Jun-ho Han said the company will construct a power plant that will generate 100 megawatts of power in Naga, a municipality in southern Cebu.
He said Kepco’s power plant, to be completed in 2008, will be located near Salcon Power. CTL
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