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.
“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.
Top photo credit: Drone Hill Wind Farm