- Brazilian energy group Auren Energia has agreed to merge with AES Brasil Energia.
- The sale of AES’s stake in the Brazilian business is expected to be finalised within four to six months.
Brazilian energy group Auren Energia has agreed to merge with AES Brasil Energia, creating a platform with 8.8 GW of renewable energy assets.
The AES Corporation will sell its 47.3 per cent equity interest in AES Brasil to Auren for about USD 640 million (EUR 588.3m). A bourse filing by Auren says the company intends to absorb AES Brasil and make it a wholly-owned subsidiary.
Also, current shareholders of AES Brasil can choose between three options as payment for their stock based on an overall exchange ratio of 0.76 of an Auren share for each AES Brasil share. If they select to receive 100 per cent in cash, AES Brasil’s shares will be valued at BRL 11.55 apiece.
The sale of AES’s stake in the Brazilian business is expected to be finalised within four to six months and is dependent on the completion of a late-stage construction project.
“With this transaction, AES is continuing to simplify its portfolio, while meeting its strong balance sheet objectives,” said Andres Gluski, AES president and CEO. He added that the US group is focusing most of its investments on supplying renewable energy to corporate customers in its home market and in its utilities business.
Furthermore, AES Brasil has a 5.2-GW portfolio of renewable energy assets, mostly hydroelectric and wind power, with some solar. Auren, meanwhile, owns 3.2 GW of operational wind, solar and hydropower plants.