CLP Holdings Ltd : CLP Holdings CEO : To Maintain Majority Stake In TRUenergy After Possible IPO
05/08/2012| 01:57am US/Eastern
Power generator CLP Holdings Ltd. (0002.HK) said Tuesday the company intends to maintain a majority stake in its TRUenergy unit if it proceeds with a possible initial public offering of the Australian company.
CLP Chief Executive Andrew Brandler said the company has made no concrete decisions yet on its plans for TRUenergy. "A potential listing in the Australian stock market of our Australian business is something we do have under consideration," said Brandler. "If we did proceed, CLP would still maintain a majority stake of that business."
Brandler's comments came after the blue-chip company said Friday it was reviewing the TRUenergy business and ownership structure, with a number of alternatives including a joint venture, partial or full sale, IPO or other transactions.
Brandler said the possible plans for TRUenergy could help the company repatriate some of its substantial capital invested in Australia back to Hong Kong. He said the Australia unit could also benefit from a larger Australian ownership, which could help its future development.
Separately, Brandler said the company's gas costs will rise significantly over the next few years, fueling immense pressure for more electricity price increases in Hong Kong. "The era of cheap gas in Hong Kong is now over," he said.
-By Jeffrey Ng, Dow Jones Newswires; 852-2802-7002; firstname.lastname@example.org