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February 7, 2008 |
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AES CORP: Inks Pact Selling Interests in Power Plant & Coal Mine The AES Corporation has entered into an agreement to sell its interests in the AES Ekibastuz power plant and Maikuben West coal mine in Kazakhstan to Kazakhmys PLC, Kazakhstan's largest producer of copper and one of the leading copper producers in the world. AES will maintain its ownership and operation of its other facilities located in Eastern Kazakhstan, which include thermal and hydro generation capacity of approximately 2,688 MW and a distribution business with over 400,000 customers. AES will receive consideration of US$1.1 billion at closing and will have the opportunity to receive, over three years, additional consideration of up to US$381 million under earn-out provisions, a management fee and a capital expenditure program bonus, for a total consideration of up to US$1.48 billion. The management agreement duration is three years and runs through December 2010. "This transaction is a good example of how active portfolio management can create opportunities to increase value for our shareholders," said Paul Hanrahan, AES President and Chief Executive Officer. "At the same time, we will maintain an important presence in the growing Kazakhstan market." Ekibastuz, a coal-fired power plant with current available capacity of approximately 2,250 MW, and Maikuben, a coal mine, are both located in Northern Kazakhstan. AES acquired its initial interests in Ekibastuz and Maikuben in 1996 and 2001, respectively. Since 1996, AES has invested over US$200 million in modernization programs bringing into operation more than 2,000 MW of generation capacity at Ekibastuz. The sale is subject to certain regulatory and third-party approvals and to customary purchase price adjustments. The transaction is expected to close in second quarter 2008. Kazakhmys has its corporate headquarters in London and operations in Kazakhstan and Germany. About AES Corp. AES Corp. -- http://www.aes.com/ -- is a global power company. The company operates in South America, Europe, Africa, Asia and the Caribbean countries. Specifically, it has operations in India. Generating 44,000 megawatts of electricity through 124 power facilities, the company delivers electricity through 15 distribution companies. The company has Latin America operations in Argentina, Brazil, Chile, Dominican Republic, El Salvador and Panama. * * * The AES Corporation still carries Moody's Investors Service's Corporate Family Rating and the senior unsecured rating assigned at B1. As of Feb. 6, 2008, the company still carries Fitch's 'BB/RR1' rating on US$500 million issue of senior unsecured notes due 2017. |
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