Proceeds to be Used to Fund AES' Robust Growth
in Renewables & US Utilities
ARLINGTON, Va., May 15, 2024
/PRNewswire/ -- The AES Corporation (NYSE: AES) announced
today that it has agreed to sell its 47.3% equity interest in AES
Brasil to Auren Energia for approximately $640 million in proceeds to AES. This sale
will be completed in conjunction with a merger between AES Brasil
and Auren Energia, with AES Brasil shares valued at approximately
11.55 Brazilian Real per share,
before purchase price adjustments.
"We are very proud of the work our people have done in
Brazil for more than 25
years. They significantly improved operations at our
hydroelectric facilities, created new commercial products, and
built a portfolio of more than 3 GW of new wind and solar
assets. As one of Brazil's
leading renewable companies, with a similar footprint, we see Auren
as the right owner of these assets to achieve greater economies of
scale and continue to serve the Brazilian market with clean and
reliable energy," said Andrés Gluski, AES President and Chief
Executive Officer. "With this transaction, AES is continuing
to simplify its portfolio, while meeting its strong balance sheet
objectives. We are now focusing the vast majority of our
investments into supplying renewable energy to corporate customers
in the US and our rapidly growing utilities."
Including this sale, as well as others closed in 2023 and 2024,
AES will have achieved more than half of its $3.5 billion asset sale proceeds target through
2027.
Today's announcement is an agreement to sell AES' 47.3% interest
in AES Brasil's 5.2 GW portfolio of renewable energy that is 51%
hydroelectric, 43% wind and 6% solar. The transaction is
expected to close in 4 to 6 months and is subject to customary
closing approvals, and a condition precedent related to completion
of a late stage construction project.
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, 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' 2023 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 2023 Annual
Report on Form 10-K filed February 26,
2024 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 Contact: Susan Harcourt 703-682-1204,
susan.harcourt@aes.com
Media Contact: Amy Ackerman 703-682-6399,
amy.ackerman@aes.com
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SOURCE The AES Corporation
