Enron Corp. said late Thursday it will sell Prisma Energy International Inc., which holds its once estimable overseas assets, to London-based Ashmore Energy International Ltd. in a two-stage transaction. Prisma, formed following Enron’s bankruptcy, is the company’s last major entity to be sold.

In bankruptcy court proceedings, Prisma was approved as an Enron spin-off along with Portland General Electric and CrossCountry Energy in 2004 (see Daily GPI, July 16, 2004). Prisma holds Central American and Caribbean power projects in the Dominican Republic, Guatemala, Nicaragua, Panama and Puerto Rico; South American gas pipeline and power assets in Argentina, Bolivia, Brazil, Colombia and Venezuela; European power assets in Italy, Poland and Turkey; and Asia Pacific power, gas and liquid petroleum projects in China, Guam, India, the Philippines and South Korea.

Enron said the “realizable value” from Prisma this year is expected to be approximately $2.9 billion, which includes $800 million in cash dividends received earlier in 2006 by Enron from Prisma Energy. Proceeds will go to Enron creditors.

“We are pleased that the expected value is over three times greater than the estimated value of Prisma Energy contained in the disclosure statement filed with Enron’s bankruptcy plan, and is a substantial benefit to the Enron creditors,” said John J. Ray III, who has been serving not only as the chairman of Enron’s board but also its president.

The first stage of the transaction closed Thursday, with Ashmore acquiring an equity stake in Prisma, initially representing just less than 25% of the aggregate voting interest. Ashmore’s purchase of the remaining equity interest in Prisma will be completed after the required consents and regulatory approvals have been obtained, and that is expected later this year. Prior to entering into the transaction, Prisma transferred to Enron a majority of its interest in the Promigas business in Colombia, which is expected to be subject to a separate auction process after closing of the second stage of the transaction.

“We appreciate the substantial effort that Enron and Prisma Energy personnel put into this transaction,” said Ray. “The transaction represents an enormous milestone for the Enron estate.”

Enron was represented by The Blackstone Group, as investment bankers, and Milbank Tweed Hadley & McCloy, as legal counsel.

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