Follow us on Twitter Find us on Facebook

YTL CORPORATION

YTL SUSTAINABILITY

UTILITIES
YTL POWER INT.

MANUFACTURING
YTL CEMENT

PROPERTY DEVELOPMENT
YTL LAND & DEV.

REIT
YTL HOSPITALITY REIT
STARHILL GLOBAL REIT

TECHNOLOGY
YTL E-SOLUTIONS

COMMUNICATIONS
YTL COMMS.
YTL BROADBAND

EDUCATION
YTL FOUNDATION
FROGASIA
FROG EDUCATION LIMITED

TRANSPORTATION
EXPRESS RAIL LINK

CARBON CONSULTING
YTL-SV CARBON

ENTERTAINMENT
KL PAC

RESTAURANTS
LOT 10 HUTONG
LOT 10 HUTONG GUANGZHOU
FEAST VILLAGE
SHOOK! SHANGHAI

SHOPPING
L0T 10 SHOPPING CENTRE
STARHILL GALLERY
WISMA ATRIA
NGEE ANN CITY
RENHE SPRING ZONGBEI
DAVID JONES

HOTELS & RESORTS
YTL HOTELS

ADVOCACY PROJECTS
YTL CCW
EARTH HOUR

REWARDS
YTL PLATINUM PLUS


Enron's Azurix to sell Wessex Water at loss

HoustonChronicle.com -- http://www.HoustonChronicle.com | Section: Business
March 25, 2002, 9:56PM

By LAURA GOLDBERG

Enron's Azurix Corp. reached a deal to sell its U.K.-based Wessex Water, the cornerstone of Enron's failed attempt to build a thriving water business, to a Malaysian company for $777 million in cash.

The price is significantly less than Enron paid for Wessex, which provides water and sewer services to consumers in England.

As part of the sale, YTL Power International would also take on about $991 million in Wessex debt, putting the deal's total value at almost $1.8 billion.

Enron, which bought Wessex in 1998, paid about $2.4 billion and assumed almost $482 million in debt, placing the total value at nearly $2.9 billion. Some on Wall Street said Enron overpaid for Wessex.

John Olson, a stock analyst with Sanders Morris Harris in Houston said of the planned YTL Power deal: "This is a tough price. They're taking a $1.1 billion haircut on the deal."

But, he said, it's difficult to say whether Enron could have received more.

"The water business in the United Kingdom has been a very marginal-growth business for the last 100 years," he said, adding that it's tough for a company to do good deals while in Chapter 11 bankruptcy, as Enron is.

Azurix, which is two-thirds owned by Enron and hasn't itself filed for bankruptcy protection, will use proceeds from the sale to repay an outstanding drawdown on a $570 million line-of-credit and to pay off bondholders.

The proceeds are expected to pay off most of Azurix's outstanding debt, Enron spokesman John Amber said.

"This is the winding down of the company," he said.

After the Wessex sale, the company's main holdings will include a few small water-related operations in Mexico and South America, and some land in California.

The deal is expected to close in about two months. The court overseeing Enron's bankruptcy also must approve the sale.

Enron intended for Wessex to serve as a platform for its water and wastewater business. Azurix sold shares to the public in June 1999.

It quickly ran into tough competition from experienced multinational rivals. They repeatedly outbid Azurix for projects, forcing Enron to pay more for some deals than they were worth. Within six months of the initial public offering, regulators in England had clamped down on water rates and Azurix's main cash flow source dwindled, sending shares down 40 percent.

Enron later took Azurix private, buying back outstanding shares it didn't own. Individual investors still own about a third of Azurix.

Azurix is on a list of ambitious overseas projects that ended up causing trouble for Enron, including the Dabhol power plant project in India.




Back
  24 May 2016
11:17:29 AM
Singapore Tatler Features: The Next Generation Steps Up  
 
  19 May 2016
11:17:23 AM
More Smart Savings With KLIA Ekspres  
 
  16 May 2016
2:40:22 PM
Tan Sri Dato' Seri Dr. Yeoh Tiong Lay awarded International Federation of Asian and Western Pacific Contractor's Associations Lifetime Membership  
 
  18 May 2016
9:51:59 AM
Frog classroom debuts  
 
  17 May 2016
5:51:07 PM
Delegates from 26 nations share best practices at first Global Child Forum in South-East Asia  
 
  17 May 2016
5:43:51 PM
From Grandkids To Granddad: Over 20 Members Of The Yeoh Clan Work At YTL  
 
  17 May 2016
5:38:27 PM
YTL incorporates new subsidiary in Indonesia  
 
  12 May 2016
10:21:32 AM
Stewardship is at the heart of the Yeoh family's work at Malaysia's YTL  
 
  12 May 2016
2:44:37 PM
YTL Power ups stake in US$2.1b Jordan venture  
 
  13 May 2016
11:22:19 AM
New Hotels and Ski Lifts Coming to Niseko, Japan  
 
   

Contact Us | Newsletter | Career | Privacy Policy
Twitter | Facebook
 
Terms, Conditions and Disclaimers
Copyright © 2001 - 2016 All rights reserved.
Powered by YTL e-Solutions Bhd.