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Sicangco, Herbert Smith, ACCRA Law, Bakers act on Philippines power station sale

Sicangco, Herbert Smith, ACCRA Law and Bakers have acted on the sale of BG Group’s indirectly held 40% stake in the Santa Rita and San Lorenzo natural gas-fired power plants in the Philippines to Korea Electric Power Corporation (KEPCO) for a net consideration of US$400m.

BG Group, a long-standing client of Herbert Smith, penned a sale and purchase agreement with KEPCO on 29 September 2010. The net consideration under the agreement is subject to standard completion adjustments that include interest to be paid to BG Group on closing – which is expected to complete in the first quarter of 2011.

The Santa Rita and San Lorenzo power plants have a capacity of 1,000NM and 500MW respectively. The plants are located in Batangas, on the island of Luzon, 80 kilometres south of Manila.

A joint team from the Singapore and London offices of Herbert Smith was led by partner Lewis McDonald and senior associate Philip Morgan, both from Herbert Smith’s Singapore-based Southeast Asian energy practice.

Alejandro Figueroa led the in-house legal team at BG Group.

Philippines firms ACCRALAW and Sicangco & Sicangco Law Offices advised BG Group on Philippines law aspects of the transaction.

Walkers provided BVI law advice to BG Group whilst Baker & McKenzie advised as international legal counsel to KEPCO.ALB