In-House Lawyers Handle $1.8 Billion Exxon-CLP Deal
Hong Kong power company CLP Holdings Ltd. and Exxon Mobil Corp. have chiefly relied on in-house counsel on a $1.8 billion deal.
CLP, one of the two main electricity suppliers in Hong Kong, has agreed to buy out Exxon’s interest in two power station operators: Castle Peak Power Co. and Hong Kong Pumped Storage Development Co. Castle Peak operates Hong Kong’s largest coal-fired power station, with 6,908 megawatts of capacity. Hong Kong Pumped Storage Development operates Guangzhou Pumped Storage Power Station, which has a 2,400 megawatt capacity.
Per the agreement, CLP will increase its stake in Castle Peak from 40 percent to 70 percent, paying Exxon $1.55 billion for its 30 percent stake. Chinese state-owned China Southern Power Grid Co. will continue to own the remaining 30 percent. CLP will also pay Exxon $258 million for its 51 percent interest Hong Kong Pumped Storage Development, which will become a wholly-owned subsidiary of CLP.
Exxon had sought an exit from the Hong Kong power market to refocus on its core oil business.
The CLP team was led by group general counsel David Simmonds, while the Exxon team was led by counsel Maria Kim. Linklaters Hong Kong partners Stuart Salt and Betty Yap advised China Southern Power Grid.