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26 April 2006 - AES Corporation yesterday announced the completion of the sale of approximately 7.6 per cent of its shares in AES Gener, the second largest power generation company in Chile to a group of Chilean and international institutional investors for approximately $123m. AES Gener has a market capitalization of $1.6bn.
After accounting for this transaction, AES remains the largest shareholder of AES Gener, with a 91 per cent interest held through its Chilean holding company. Proceeds from the sale will be used by AES Corporation for debt retirement and to fund growth investments in its global business portfolio and other corporate purposes.
"AES Gener is an important part of our business today and will continue to play a key role in our growth strategy going forward," said AES President and Chief Executive Officer Paul Hanrahan. "Selling a portion of our investment provides us with greater financial flexibility and, with broader public ownership, better access to capital markets to support future growth projects in Chile."
"The positive market reception to this share offering and recent upgrade of AES Gener to investment grade reflect its good performance and strong growth prospects," said Andres Gluski, President of AES Latin America. "AES Gener has a solid financial structure and is an efficient, diversified and responsible generation company."
In Chile, AES Gener is constructing a 120 MW power plant and is planning to build two coal-fired power plants totaling 450 MW. The company is the second largest electric generation company in Chile with installed capacity of 2428 MW, composed of 271 MW of hydroelectric and 2157 MW of thermoelectric generating capacity, which includes coal, natural gas, diesel and cogeneration capacity. In 2005, AES Gener recorded operating income of $219m and net income of $84m.
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