AES buy out PSEG interests in Argentina

The AES Corporation, the US-based global power group, announced Monday that an AES subsidiary has entered into an agreement to purchase all of PSEG Global’s interests in five jointly-held businesses in Argentina. The purchase price for the transaction is $376m and 90 per cent of the transaction will be seller financed by PSEG Global on a non-recourse basis.

AES will be acquiring interests in three distribution companies and two generating companies. The acquired interests the distribution companies are a 30 per cent interest in the distribution company Empresa Distribuidora de La Plata S.A (Edelap), 33 per cent of the distribution companies Empresa Distribuidora de Energia Norte S.A. (Eden) and Empresa Distribuidora de Energia Sur S.A (Edes).

Generating interests are a 33 per cent interest in the 830 MW AES Paran௿½as fired combined cycle power plant, which is slated to achieve commercial operations, later this year and a 19 per cent interest in the 650 MW Central Termica San Nicolas power plant.

The transaction is subject to various closing conditions, including obtaining Argentine regulatory approval and lender consents.

Joseph Brandt, Project Director for AES Andes, said, “This is a unique opportunity to acquire businesses we already know and like and to do so with minimal up front equity and long term non-recourse financing. “

Dennis W. Bakke, President and Chief Executive Officer of AES, stated, “We like 100% control of our businesses when that is possible. It’s even better when we can accomplish this objective on very attractive terms.”

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