UPDATE - AES confirms USD-246m stake buy in AES Tiete
The Tucano Wind Complex in Brazil. Source: AES Tiete
The AES Corporation (NYSE:AES) confirmed on Wednesday that its unit in Brazil has agreed to buy an 18.5% economic interest in AES Tiete SA for BRL 1.27 billion (USD 245.6m/EUR 209m).
As unveiled previously by the Brazilian Development Bank, or BNDES, AES Holdings Brazil Ltda has won the open competitive process to buy a minority stake in AES Tiete from BNDES Participacoes SA (BNDESPar). The initial announcement by the latter did not give more details about the deal.
AES then said that its Brazilian subsidiary will purchase 73.8 million units, each comprising five shares, of AES Tiete at BRL 17.15 apiece. Subject to completion of final documentation, the transaction is seen to close later this quarter and will be funded primarily with existing non-recourse debt financing from a consortium of local lenders. It will increase AES Brasil’s existing interest in the renewable energy company to 42.85%.
"Following this transaction, we plan to move AES Tiete's listing to the Novo Mercado, the highest corporate governance segment of companies listed on the Brazilian stock exchange, which is expected to further unlock the value of AES Tiete for the benefit of all shareholders," commented Andres Gluski, AES’ president and CEO.
The US energy company anticipates the purchase to build on its annual earnings by between USD 0.01 (EUR 0.0085) and USD 0.02 per share in 2020 and thereafter.
At present, AES Tiete owns 3.7 GW of renewable power capacity in operation or under construction, including 2.7 GW of hydro, 708 MW of wind and 310 MW of solar.
Another competitor for BNDESPar’s stake in AES Tiete was Eneva SA (B3:ENEV3), which improved an earlier offer to combine its business with that of AES Tiete, but to no avail.