updated 12/11/2006 10:33:22 AM ET 2006-12-11T15:33:22

Energy provider Mirant Corp. has reached a deal to sell its Philippine business to a consortium that includes The Tokyo Electric Power Company Inc. for $3.42 billion.

The Atlanta-based company said Monday it expects the deal with Tokyo Electric and Marubeni Corp., which also includes working capital, to close in the second quarter of 2007.

Mirant said related debt that will be repaid is estimated to be roughly $642 million at closing.

The deal is part of Mirant’s effort to shed some assets and businesses to return cash to shareholders.

Last January, Mirant emerged from bankruptcy — the 11th largest bankruptcy filing in U.S. history at the time of the filing in July 2003. Mirant reduced its work force and shaved billions in debt from its balance sheet as part of its return to the public markets.

In June, it rescinded its nearly $8 billion bid to acquire New Jersey-based rival NRG Energy Inc., following NRG’s unwillingness to consider a deal. A Mirant-NRG combination would have made it among the largest U.S. power producers.

Mirant shares rose 95 cents to $32.17 in morng trading on the New York Stock Exchange.

Copyright 2006 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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