The AES Corporation (NYSE: AES) announced today that it has entered into an agreement with SYND Holdco Limited, a joint venture of Greencoat UK Wind PLC and Swiss Life Funds (Luxembourg) Global Infrastructure Opportunities S.C.A. to sell 100% of its equity interests in four operating wind projects in the United Kingdom, totaling 87.5 MW, for $160 million, subject to customary purchase price adjustments. The transaction is expected to close in the third quarter of 2014.
“Although we believe that this transaction represents compelling value for AES, we are continuing to develop a pipeline of 250 MW of wind projects in Scotland.”
“This transaction demonstrates the strong interest for wind projects in the United Kingdom,” said Andrés Gluski, AES President and Chief Executive Officer. “Although we believe that this transaction represents compelling value for AES, we are continuing to develop a pipeline of 250 MW of wind projects in Scotland.”
This transaction includes four operating wind projects in the United Kingdom: 28.6 MW Drone Hill; 22 MW North Rhins; 20.5 MW Sixpenny Wood; and 16.4 MW Yelvertoft. The book value of AES’ equity interests in these four projects is approximately $100 million. These projects were expected to contribute approximately $10 million to AES’ Net Income (after tax) in 2015. As a result of the transaction, a total of $134 million in non-recourse debt on AES’ Balance Sheet as of June 30, 2014 will be removed.
The AES Corporation (NYSE: AES) is a Fortune 200 global power company. We provide affordable, sustainable energy to 20 countries through our diverse portfolio of distribution businesses as well as thermal and renewable generation facilities. Our workforce of 17,800 people is committed to operational excellence and meeting the world’s changing power needs. Our 2013 revenues were $16 billion and we own and manage $40 billion in total assets. To learn more, please visit www.aes.com. Follow AES on Twitter @TheAESCorp.
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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 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 achievements of planned productivity improvements and incremental 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’ 2013 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.
Any Stockholder who desires a copy of the Company’s 2013 Annual Report on Form 10-K dated on or about February 25, 2014 with the SEC may obtain a copy (excluding Exhibits) 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 Form 10-K may be obtained by visiting the Company’s website at www.aes.com.