ARLINGTON, Va.--(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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Source: The AES Corporation