Herbert Smith has advised UK gas producer BG Group on its agreement to sell 40 percent of its stake in two gas-fired power generation plants in the Philippines to its partner in the facilities, First Gen Corp, for $360 million.
Reuters said that the BG Group was selling the stake in order to free up cash to invest in more lucrative gas and oil production in Brazil and Australia.
The Herbert Smith team was led by Singapore-based energy partner Lewis McDonald and senior associate Philip Morgan, while the BG Group was advised by Rosemarie Sicangco of Sicangco & Sicangco Law Offices on Philippine law matters. First Gen, meanwhile, was advised by Paul Hastings, led by Hong Kong-based partner Patricia Tan Openshaw, with Quiason Makalintal Barot Torres Ibarra & Sison Law Firm acting as Philippines counsel.
“It has been a pleasure to assist BG Group on this transaction in the context of its strategic divestment programme,” said McDonald in a statement. “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.”
The two plants are the 1000 megawatt Santa Rita power plant and the 500 megawatt San Lorenzo power plant, both on the island of Luzon. ALB
Ranajit Dam is Southeast Asia Editor at ALB. Follow him on Twitter: @RanajitDam_ALB.
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