AES secures 98% ownership stake in AES Andes

The San Fernando solar farm. Image source: AES Andes (

January 10 (Renewables Now) - The AES Corporation (NYSE:AES) announced today that its Chilean unit will be successful in increasing its interest in AES Andes SA to 98.13% from 66.98% for an aggregate consideration of CLP 437 billion (USD 530m/EUR 468m).

The subsidiary in question, called Inversiones Cachagua SpA, launched a tender offer on December 7, 2021, at a price of CLP 135.14 per share.

The transaction is expected to be finalised on January 12, 2022. It will be funded through a mix of non-recourse debt amounting to a minimum of USD 350 million and available corporate liquidity.

"This transaction is significantly cash and earnings accretive for AES shareholders by unlocking the value of AES Andes that was not reflected in its share price," said Andres Gluski, AES' president and CEO.

AES Andes operates 4.4 GW of power generating capacity throughout Chile, Colombia and Argentina, and has a further 1.1 GW under construction, whilst 2.2 GW of coal-fired plants will be retired or sold. The firm has announced plans to add 2.4 GW of renewables.

Going private will be an option for AES Andes over the medium term if the conditions for delisting are fulfilled, AES said in its statement.

(CLP 100 = USD 0.121/EUR 0.107)

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