Shearman & Sterling advised Engie Global Developments B.V (Engie) and International Power (Impala) on the sale of their stake in the Paiton power plant in Indonesia to Qatari infrastructure investment firm Nebras Power Q.S.C (Nebras). The deal is expected to close in the second half of 2016, subject to customary approvals and regulatory consents.

Paiton is Indonesia’s largest independent power producer with over 2,000 megawatts (MW) of operating base. It represents four per cent of Indonesia’s total installed capacity.

Simultaneous with the Paiton transaction, Shearman & Sterling also advised Engie on the sale of its entire shareholding in Meenakshi, a coal-fired power plant in India, to India Power Corporation Limited (IPCL). The deal is expected to close at the same time as the Paiton transaction.

The Meenakshi Energy coal-fired thermal plant is a 1,000 MW plant located in India’s south eastern state of Andhra Pradesh. The sale of Engie’s interests in the two coal-fired power plants marks an important step in the reduction of its worldwide carbon dioxide emissions.

The Shearman & Sterling team advising on the transaction was led by partners Laurence Levy, Matthew Powell (both London-M&A), Nick Buckworth (London-Project Development & Finance) and Simon Letherman (London-Tax), and supported by associates Nick Withers, Tom Barker, Rosie Boyle (all London-M&A), Gabriel Ng and Lois Howarth (both London-Tax).