Boston, MA 06/20/2014 (wallstreetpr) – One of the leading power providers AES Corporation (NYSE:AES) recently announced that it would sell 50% of its solar power business stack to SunEdison Inc. (SUNE:US). The deal will earn as much as $165 million for AES. According to the contract, AES will sell its solar power business owned by Silver Ridge in India, US, and Europe. These projects include both completed ones and underdevelopment projects. AES is looking forward to using the net proceedings of the deal in expansion of its business in other parts of the world.
Silver Ridge is a 336-megawatt solar power venture between Riverstone Holdings LLC and AES Corporation (NYSE:AES). It recently made an announcement in which its spokesperson said,” According to terms and conditions of the deal, SunEdison will have the option to buy another 50% share in company’s 130 megawatts branch for $42 million located in Italy.” The company has time till by August 2015 to accomplish this transaction. At the same time, AES doesn’t want to lose its stake in Spain and Puerto plant which has a capacity of 55 megawatts production.
AES Corporation (NYSE:AES) will receive additional $50 million from a tax equity investment made by Google Inc. in a 266-megawatt project of Silver Ridge. The project is named Mount Signal and located in California. According to reports, it has started generating power couple of months back in April.
When the chief executive officer and president of AES Corporation (NYSE:AES), Andrés Gluski was contacted, he said,” Our recent deal with SunEdison Inc. is a fine example of the efforts that we make to simplify our portfolio.” The main objective of AES is to maximize the shareholders’ returns; hence the company will look forward to using the received money in several other projects that can help it in achieving its objective. AES has mentioned details of all the objectives and future steps to fulfill them in its quarterly guidelines.
