Boston, MA 06/19/2014 (wallstreetpr) – The globally recognized power company, the AES Corp (NYSE:AES) announced on June 17, 2014 that it has signed an agreement with Sunedison Inc (NYSE:SUNE), in order to sell 50% of its stake in 336 MW of solar photovoltaic project that is owned by Silver Ridge Power LLC. Silver Ridge Power LLC, is a joint venture of Riverstone Holdings LLC and AES Corp.
AES To Sell Its Interest In Solar Photovoltaic Projects:
According to the agreement, AES Corp (NYSE:AES) will sell its interest in the solar photovoltaic projects, which are in operation as well as under development in the U.S., India, and Europe for an equity buying cost of $165 million. There is also an option for SunEdison to acquire 50% ownership of AES’s Italy based 130 MW solar photovoltaic project for an additional amount of $42 million through August 2015. However, a definitive agreement does not speak about the sale of 50% stake of AES in the outstanding 55 MW of solar photovoltaic project in Spain and Puerto Rico.
Proceeds From Google’s Tax Equity Investment:
As per the announcement done on October 2013, the company will be entertained with almost $50 million proceeds from Google’s tax equity investment. It was done in California-based 266 MW Mount Signal project of Silver Ridge. The project attained commercial operations in the month of April 2014.
CEO Of AES Says:
The Chief Executive Officer and President of AES Corp (NYSE:AES), Andres Gluski, said that this transaction is an added instance of how the company is continuing to simplify its portfolio and release the value of the company’s assets. The president also added that the company aims to proceed in line with the strategies in order to maximize the total shareholder returns.
The transaction is assumed to be modestly accretive by 2015 and beyond. AES Corp (NYSE:AES)’s transaction with SunEdison is subjected to customary regulatory approvals that include approval from FERC (Federal Energy Regulatory Commission) as well as anti-trust review under HSR (Hart-Scott-Rodino) Act.
