Law firm Milbank, Tweed, Hadley & McCloy has represented an Asian consortium, FPM Power Holdings Limited, in purchasing a majority stake in a construction phase of a 771MW new-generation LNG power plant that will supply electricity to Singapore.
FPM Power Holdings Limited - a joint venture vehicle of First Pacific Company Limited of Hong Kong and Manila Electric Company of the Philippines - owns 70 percent of the project for S$660 million (US$537 million), while Petronas International Corporation of Malaysia owns the remaining 30 percent.
The buyers purchased the asset from GMR Infrastructure Limited of India and its subsidiary GMR Infrastructure (Singapore) Pte. Limited as part of their strategy to expand in Southeast Asia. The asset is viewed as a strategic investment that benefits from Singapore's predictable regulatory environment and rapidly growing economy.
The power plant, located on Jurong Island, is expected to commence operations in December this year.
Milbank's deal team was led by Hong Kong partner Gary Wigmore, head of the firm's Project Finance Group in Asia. Law firm White & Case was counsel to the seller GMR Infrastructure; Norton Rose represented the project finance lender group; and Allen & Gledhill served as local Singapore counsel to the buyers.
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