ARLINGTON, Va., Aug. 31, 2000 — Through a subsidiary, AES Corp. Thursday said it has agreed to acquire Reliant Energy’s stake in El Salvador Energy Holdings SA for an undisclosed sum. The sale is expected to close by the end of the third quarter.
El Salvador Energy Holdings, which owns Compania de Alumbrado Electrico de San Salvador SA de CV, Empresa Electrica de Oriente SA de CV, and Distribuidora Electrica de Usulutan SA De CV, is 50% owned by Reliant and 50% by Grupo EDC of Venezuela.
AES owns approximately 87% of Grupo EDC. Through the purchase of Reliant Energy International’s interest, AES will own the controlling interest in the three distribution companies. Together the companies serve 3.5 million people, about 60% of El Salvador’s population.
Reliant Energy’s Latin American subsidiary acquired an interest in the El Salvador companies in July 1998 for approximately $150 million. The sale represents Reliant Energy International’s entire interest in El Salvador. It is part of the company’s plan, announced in December 1999, to divest its Latin American investments.
Reliant Energy said it continues to hold discussions with potential buyers for its interests in electric systems in Brazil, Colombia, and Argentina and in a power generation/coke calcining plant on the east coast of India.
With 1999 revenue of $3.25 billion, AES is an independent power company with investments in the US and abroad.
Reliant Energy, an energy services and energy delivery company with $20 billion in annual revenue and assets totaling $30 billion, has operations in the US and western Europe.