28 March 2002 – Entergy Corporation announced Thursday that it has completed the sale of its minority interests in fossil fuel and hydroelectric generating facilities in Argentina, Chile, and Peru to Southern Cone Power.
Southern Cone Power is a consortium formed by CDC Capital Partners of the UK, Hart Energy International of Houston, Texas and Scudder Investment Funds of New York City. Following the receipt of various government approvals, the $135.5m transaction was finalized March 22.
Included in the sale was Entergy’s interest in Edegel, Peru’s largest private power company with over 3685 MW of hydro and thermal generation capacity. In Argentina, Entergy sold its interest in the 2000 MW oil-fired Costanera facility and the 220 MW CCGT Central Buenos Aires facility. In Chile, the sale included Entergy’s 25 per cent interest in the 375 MW CCGT San Isidro facility.
Entergy will record the sale in the first quarter of 2002. Any impact, which will be recorded as a special item, is not expected to be material because Entergy recorded reserves in previous periods to reduce the carrying value of these assets on its books. The sales will not impact Entergy’s previously issued earnings guidance for 2002.
“Our principal strategic focus currently is on North America and Europe. The decision to sell was thus based on a very disciplined point-of-view-driven risk management process. This transaction allows us to reduce consolidated debt and maintain the desired balance and risk in our portfolio,” said Geoff Roberts, president and chief executive officer of Entergy Wholesale Operations.
Commenting on this announcement, Bob Hart, the recently appointed Chief Executive Officer of CDC Globeleq, said, “We expect that CDC Globeleq’s investment in these power businesses will encourage other private equity investors into the market, providing much needed fiscal support for the underlying economies.”