Raising $338
Million of Asset Sale Proceeds
ARLINGTON, Va., Dec. 21,
2023 /PRNewswire/ -- The AES Corporation (NYSE:
AES) announced today that it has closed minority sell-downs of its
businesses in the Dominican
Republic and its AES Colón business in Panama for proceeds of $338 million. This includes the
transactions announced in September for proceeds of $179 million after purchase price adjustments at
closing, as well as sell-downs of additional stakes in the
businesses through the expansion of existing partnerships with
Grupo Estrella and Grupo Popular's
subsidiary, AFI Popular, through one of its closed-end funds, for
$159 million. In total, AES
sold 20% of its businesses in the Dominican Republic and 35% of AES Colón in
Panama.
"We are very pleased to announce the closing of these
transactions and to continue the great progress on our expanded and
accelerated asset sale proceeds target," said Stephen Coughlin, AES Executive Vice Present and
Chief Financial Officer. "These transactions include the closing of
the two previously announced sell-downs, as well as the sale of an
additional 10% in the Dominican
Republic and an additional 15% of AES Colón in Panama."
The transactions closed today include the sale of 20% of AES'
businesses in the Dominican
Republic to the following parties:
- 10% to Grupo Popular's subsidiary, AFI Popular, through
one of its closed-end funds;
- 5% to Grupo Linda; and
- 5% to Grupo Estrella
Today's closed transactions also include the sale of 35% of AES
Colón in Panama to the following
parties:
- 20% to Grupo Linda; and
- 15% to Grupo Estrella
AES' businesses in the Dominican
Republic include an LNG regasification terminal, with a
160,000 m3 LNG capacity
storage tank, the AES Andres 319 MW combined cycle gas turbine
plant, DPP 328 MW combined cycle gas turbine plant, as well as an
additional 150 MW of solar and wind power plants. AES Colón
includes a 381 MW combined cycle gas turbine plant with an adjacent
regasification facility that has a 180,000
m3 LNG capacity storage tank.
AES will continue operating its businesses in the Dominican Republic and Panama, with an ownership interest of 65% in
each business.
Since its third quarter 2023 earnings call in November, AES has
also announced the signing of an agreement to sell its Mong Duong 2 coal facility in Vietnam and sold down its stake in Fluence
from 33% to 29%, effectively monetizing 12% of its stake, for
proceeds of $160 million.
About AES
The AES Corporation (NYSE: AES) is a Fortune 500 global energy
company accelerating the future of energy. Together with our
many stakeholders, we're improving lives by delivering the greener,
smarter energy solutions the world needs. Our diverse
workforce is committed to continuous innovation and operational
excellence, while partnering with our customers on their strategic
energy transitions and continuing to meet their energy needs
today. For more information, 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 expectations regarding 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 the execution of PPAs, conversion of our backlog
and growth investments at normalized investment levels, rates of
return consistent with prior experience and the COVID-19
pandemic.
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' 2022 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, except where
required by law.
Any Stockholder who desires a copy of the Company's 2022 Annual
Report on Form 10-K filed March 1,
2023 with the SEC may obtain a copy (excluding the exhibits
thereto) 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 Annual Report
on Form 10-K may be obtained by visiting the Company's website at
www.aes.com.
Website Disclosure
AES uses its website, including its quarterly updates, as
channels of distribution of Company information. The
information AES posts through these channels may be deemed
material. Accordingly, investors should monitor our website,
in addition to following AES' press releases, quarterly SEC filings
and public conference calls and webcasts. In addition, you
may automatically receive e-mail alerts and other information about
AES when you enroll your e-mail address by visiting the "Subscribe
to Alerts" page of AES' Investors website. The contents of
AES' website, including its quarterly updates, are not, however,
incorporated by reference into this release.
Investor Relations: Susan
Harcourt 703-682-1204, susan.harcourt@aes.com
Media Contact: Stephanie Cathcart 571-294-6824,
stephanie.cathcart@aes.com
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SOURCE The AES Corporation