AES Announces Agreement to Sell AES Sul in Brazil
June 16 2016 - 7:00AM
Business Wire
The AES Corporation (NYSE: AES) announced today that it has
entered into an agreement to sell its 100% equity interest in AES
Sul, one of its utilities in Brazil, to CPFL Energia S.A. (NYSE:
CPL) for BRL1,698 million (equivalent to $464 million at the
expected BRL/USD conversion rate of 3.66 at the time of closing),
subject to closing price adjustments. The transaction is expected
to close in the second half of 2016, subject to approval by CPFL
Energia’s shareholders and customary regulatory approvals.
“The sale of our distribution company, Sul, in Brazil is yet
another step we are taking to optimize our portfolio for future
value creation,” said Andrés Gluski, AES President and Chief
Executive Officer. “We are proud of the work we have done at Sul
over the past 19 years to improve safety, systems and operations,
but believe that today we can best serve our shareholders by
re-deploying our capital in other businesses and to de-risk the
Company.”
This sale was previously included in the Company’s 2016 guidance
and 2017-2018 expectations. Additionally, the transaction will
remove a total of $335 million in non-recourse debt on AES’ Balance
Sheet as of March 31, 2016.
About AES
The AES Corporation (NYSE: AES) is a Fortune 200 global power
company. We provide affordable, sustainable energy to 17 countries
through our diverse portfolio of distribution businesses as well as
thermal and renewable generation facilities. Our workforce of
21,000 people is committed to operational excellence and meeting
the world’s changing power needs. Our 2015 revenues were $15
billion and we own and manage $37 billion in total assets. To learn
more, please visit www.aes.com. Follow AES on Twitter
@TheAESCorp.
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.
Actual results could differ materially from those projected in
our forward-looking statements due to risks, uncertainties and
other factors. Important factors that could affect actual results
are discussed in AES’ filings with the Securities and Exchange
Commission (the “SEC”), including, but not limited to, the risks
discussed under Item 1A “Risk Factors” and Item 7: Management’s
Discussion & Analysis in AES’ 2015 Annual Report on Form 10-K
and in subsequent reports filed with the SEC. Readers are
encouraged to read AES’ filings to learn more about the risk
factors associated with AES’ business. AES undertakes no obligation
to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
Any Stockholder who desires a copy of the Company’s 2015 Annual
Report on Form 10-K dated on or about February 23, 2016 with the
SEC may obtain a copy (excluding Exhibits) without charge by
addressing a request to the Office of the Corporate Secretary, The
AES Corporation, 4300 Wilson Boulevard, Arlington, Virginia 22203.
Exhibits also may be requested, but a charge equal to the
reproduction cost thereof will be made. A copy of the Form 10-K may
be obtained by visiting the Company’s website at www.aes.com.
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The AES CorporationInvestor Contact:Ahmed Pasha
703-682-6451orMedia Contact:Amy Ackerman 703-682-6399
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