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.
