Greentech Lead Asia: AES Corporation has signed two deals
to sell majority stake in its businesses in China for $134 million.
“The sale of these businesses is in line with our
strategy to exit those markets where we do not have a competitive advantage.
Narrowing our geographic focus and investing in our core markets better
positions us for long term earnings growth,” said Andres Gluski, AES
President and Chief Executive Officer.
Since September 2011, AES announced eight asset sales
totaling $890 million. Six of those transactions, totaling $756 million, have
already closed.
On May 4, 2012 AES agreed to sell its 25 percent equity
in the 2,100 MW coal-fired Yangcheng plant and its 49 percent equity in the 248
MW China Wind joint venture to Sembcorp Utilities for a total of $86 million.
AES is also selling its 49 percent stake in Jianghe Rural
Electrification Development (JHRH) to its JV partner, China Three Gorges New
Energy, for $48 million. JHRH includes seven small hydroelectric plants, one
wind farm and one co-generation plant with a total gross capacity of 379 MW.
Total gross capacity of the plants to be sold is 2,727
MW, or 717 MW on an ownership-adjusted basis.
AES’ generation footprint in China will consist of one
hydro and one gas-fired plant, which together have a total gross capacity of 75
MW, or 31 MW on an ownership-adjusted basis.
Use of proceeds from asset sales will be evaluated in
accordance with AES’ capital allocation policy to maximize total shareholder
returns by paying down debt, investing in new businesses and/or repurchasing
shares.
The AES Corporation’s 2011 revenues were $17 billion.