AES finalizes minority stake sales of LNG businesses in Dominican Republic and Panama

AES Corporation (NYSE: AES) has achieved a significant milestone by completing the minority sell-downs of its businesses in the Dominican Republic and AES Colón in Panama, accumulating proceeds of $338 million. This financial move includes the transactions announced in September, which resulted in proceeds of $179 million after purchase price adjustments, and additional sell-downs in these businesses through the expansion of existing partnerships with Grupo Estrella and Grupo Popular’s subsidiary, AFI Popular, for $159 million. Collectively, AES sold 20% of its businesses in the Dominican Republic and 35% of AES Colón in Panama.

Expanding and Accelerating Asset Sale Proceeds Target

Stephen Coughlin, AES Executive Vice President and Chief Financial Officer, expressed satisfaction with the closure of these transactions, emphasizing their contribution to the company’s expanded and accelerated asset sale proceeds target. The transactions include the sale of an additional 10% stake in the Dominican Republic and an additional 15% of AES Colón in Panama.

Details of the Closed Transactions

The transactions closed today encompass the sale of 20% of AES’ businesses in the Dominican Republic to various parties, including 10% to AFI Popular, 5% to Grupo Linda, and 5% to Grupo Estrella. Additionally, the sale of 35% of AES Colón in Panama involved 20% to Grupo Linda and 15% to Grupo Estrella.

AES’ Operations in Dominican Republic and Panama

AES’ businesses in the Dominican Republic include an LNG regasification terminal with significant storage capacity, the AES Andres and DPP combined cycle gas turbine plants, and additional renewable power plants. AES Colón comprises a combined cycle gas turbine plant alongside a regasification facility in Panama. Despite these sell-downs, AES maintains a 65% ownership interest in each business.

Further Asset Monetization Efforts

Since its third-quarter 2023 earnings call in November, AES has continued its asset monetization strategy. This includes the signing of an agreement to sell its Mong Duong 2 coal facility in Vietnam and reducing its stake in Fluence from 33% to 29%, effectively monetizing 12% of its stake, for additional proceeds of $160 million.

This strategic move by AES Corporation marks a significant step in reshaping its asset portfolio in the Latin American energy market, reflecting its commitment to optimizing its business operations while continuing to play a pivotal role in the region’s energy sector.