Southern Company, through its Southern Electric International subsidiary, today announced a $2.7 billion agreement to
purchase a majority interest in Consolidated Electric Power Asia (CEPA), one of the largest independent power producers
in Asia, giving the Atlanta-based utility a major market presence in some of the worlds fastest-growing economies.
Combining the assets of Southern Electric International and CEPA will create one of the worlds largest independent power
producers, supplying electricity to the heart of Asia including three of the worlds most populated countries as well as
Europe, North America and South America, said Southern Company Chairman, President and Chief Executive Officer A.
CEPA, a subsidiary of Hong Kong-based Hopewell Holdings Ltd., builds, owns and operates electric power generating
plants in China and the Philippines with projects under development in Pakistan and Indonesia. CEPA owns 3,995
megawatts of power generation with another 1,200 megawatts under construction and power purchase agreements covering
an additional 2,640 megawatts. CEPA was established in 1993 as a holding company for Hopewells electric power
Southern Electric owns 1,581 megawatts, with another 380 megawatts under construction. Southern Electric operates a total
of 2,735 megawatts.
Hopewell is a major developer of infrastructure projects in Asia. Hopewells projects include highways, bridges, mass transit
systems, retail, commercial and residential properties and hotels. Hopewell currently owns 60.4 percent of CEPA. Both
companies are among the largest listed on the Stock Exchange of Hong Kong.
Under the agreement, CEPA shareholders will receive $2.1 billion from Southern Company and $600 million in dividends for
80 percent of the company. Hopewell will become the largest minority shareholder of CEPA. The transaction is subject to
approvals by the Stock Exchange of Hong Kong and CEPA shareholders.
Dahlberg said the transaction brings together the technical expertise and market strength of two industry leaders, which will
help meet the enormous demand for the economical and reliable electric service needed to fuel Asias booming economies.
CEPAs Asian power projects bring a greater regional diversity and geographical balance to Southern Companys
international holdings, which already include electric power facilities in North America, South America, the Caribbean and
Europe, Dahlberg said.
Two years ago, we established a goal for Southern Electric International to become one of the worlds top independent
energy companies as a means of enhancing Southern Companys long-term growth and income potential and shareholder
value, Dahlberg said. This partnership with CEPA is a significant step toward that goal.
Southern Electric International develops, builds, owns and operates power production and delivery facilities and provides a
broad range of technical services to utilities and industrial companies in the U.S. and international markets. Southern Electric
operates electric power facilities in England, Argentina, Chile, the Bahamas, Trinidad and Tobago and the United States.
Southern Electric also administers power marketing operations for Southern Company through its Southern Energy
Southern Company (NYSE: SO), the largest producer of electricity in the United States, is also the parent firm of five electric
utilities: Alabama Power, Georgia Power, Gulf Power, Mississippi Power and Savannah Electric. Other subsidiaries include
Southern Communications Services, Southern Development and Investment Group, Southern Nuclear and Southern
Company Services. Southern Companys common stock is one of the 20 most widely held corporate stocks in America.