AES is selling 100 percent of its equity interest in SONEL, Dibamba and Kribi to Actis, a United Kingdom-based private equity fund that has invested over $1.5 billion in generation and distribution of electricity in emerging markets. “We are confident that Actis, with their long-term and sustainable vision, will continue to invest in Cameroon’s electricity infrastructure and will empower local management teams to further improve their business,” said Gluski.
Of the $220 million in proceeds from the sale of the Cameroonian businesses, $180 million will be paid at closing, with the remaining non-contingent $40 million backed by a letter of credit and payable after 24 months.
In October 2013, AES agreed to sell 100 percent of AES Saurashtra Windfarms Pvt Ltd (ASW), a wholly-owned subsidiary of AES, to Tata Power Renewable Energy Limited, a wholly-owned subsidiary of Tata Power. ASW is a 39.2 MW wind farm in Gujarat, India and commenced operations in 2012. AES also signed an agreement in November to sell its wind development pipeline in Poland.
The businesses in Cameroon, India and Poland are expected to generate approximately $26 million of net income in 2013. Use of proceeds from asset sales will be evaluated in accordance with AES’ capital allocation policy, to maximize total shareholder return by paying down debt, investing in new businesses and/or repurchasing shares.About AES The AES Corporation (NYSE:AES) is a Fortune 200 global power company. We provide affordable, sustainable energy to 21 countries through our diverse portfolio of distribution businesses as well as thermal and renewable generation facilities. Our workforce of 25,000 people is committed to operational excellence and meeting the world’s changing power needs. Our 2012 revenues were $18 billion and we own and manage $42 billion in total assets. To learn more, please visit www.aes.com. Safe Harbor Disclosure This news release contains forward-looking statements within the meaning of the Securities Act of 1933 and of the Securities Exchange Act of 1934. Such forward-looking statements include, but are not limited to, those related to future earnings, growth and financial and operating performance. Forward-looking statements are not intended to be a guarantee of future results, but instead constitute AES’ current expectations based on reasonable assumptions. Forecasted financial information is based on certain material assumptions. These assumptions include, but are not limited to, our accurate projections of future interest rates, commodity price and foreign currency pricing, continued normal levels of operating performance and electricity volume at our distribution companies and operational performance at our generation businesses consistent with historical levels, as well as achievements of planned productivity improvements and incremental growth investments at normalized investment levels and rates of return consistent with prior experience.