US oil and gas giant Exxon Mobil Corp (NYSE:XOM) has mandated Barclays Plc (LON:BARC) to help it sell nearly half of its 60% stake in Hong Kong-based coal-fired power stations operator Castle Peak Power Co Ltd, informed people told Reuters.
According to the sources, Exxon has so far had no luck in its talks to divest the interest to CLP Holdings Ltd (HKG:0002) and state-controlled China Southern Power Grid as they had failed to reach an agreement on the valuation. CLP, which owns the other 40% in the business, is still eager to buy the offered stake as the operation brings guaranteed returns, one of the insiders said.
The auction could lure infrastructure funds, Japanese traders and sovereign wealth funds, the sources said, adding that first-round bids are expected in early April. They noted that the 60% interest was worth some USD3bn (EUR2.3bn) last March and half of it would be valued at nearly USD2bn, including a premium.
None of the parties commented to Reuters.
British banking group HSBC Holdings Plc (LON:HSBA) said on Friday that it had reached a deal to dispose of its 44% interest in a card processing joint venture in the Asia-Pacific region to partner Global Payments Inc (NYSE:GPN) for USD242m (EUR196.9m) in cash.
Under the terms of the agreement, HSBC’s wholly-owned subsidiary, The Hongkong and Shanghai Banking Corp Ltd, will sell its entire 44% stake in Global Payments Asia-Pacific Ltd (GPAP) to the US electronic transaction payment processing specialist. Global Payments holds the rest of the shares in GPAP after participating in the inception of the JV in 2006.
The move is part of HSBC’s strategy to divest non-core operations. It is awaiting regulatory clearance and the agreement of the terms of certain ancillary commercial contracts. Completion is scheduled for the second half of the year.
The parties have agreed that following closing, GPAP will act as the preferred strategic provider of card merchant acquiring services for HSBC in the Asia-Pacific region. The entity covers 11 countries and territories.
London-headquartered HSBC has about 7,200 offices in more than 80 countries and territories in Europe, North and Latin America, the Middle East and North Africa as well as in the Asia-Pacific region.