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Herbert Smith advises BG Group on the sale of its interest in Philippines power plants

Herbert Smith has advised BG Group on an agreement to sell its 40% equity interest in two gas-fired power generation plants in the Philippines to its partner in the facilities, First Gen Corporation, for net cash proceeds of US$360 million.

The sale and purchase agreement, signed and completed on 30 May 2012, covers the 1000 megawatt Santa Rita power plant and the 500 megawatt San Lorenzo power plant, both on the island of Luzon.

The Herbert Smith team was led by Singapore-based energy partner Lewis McDonald and senior associate Philip Morgan.

Lewis McDonald commented:

“It has been a pleasure to assist BG Group on this transaction in the context of its strategic divestment programme. Our participation in this transaction adds to the significant experience our Singapore-based energy team has gained in the past few years of closing major divestments for international energy companies in Southeast Asia.”

In respect of Philippines law matters, BG Group was advised by Rosemarie Sicangco of Sicangco & Sicangco Law Offices, Manila. Rothschild’s Singapore-based team, led by Peter Bird, acted as financial advisor to BG Group.

First Gen Corporation was advised by Paul Hastings, led by Hong Kong-based partner, Patricia Tan Openshaw. Quiason Makalintal Barot Torres Ibarra & Sison Law Firm, led by Ruel Soriano, advised First Gen Corporation on Philippines law matters.