AES to buy BNDESPar’s 18.5% stake in Brazilian power utility AES Tietê

Global power company AES Corporation said that its fully-owned subsidiary – AES Holdings Brazil (AES Brasil) has signed a deal worth BRL 1.27 billion ($246 million) to acquire an 18.5% stake in AES Tietê from BNDES Participações (BNDESPar).

AES Tietê is a Brazilian power utility which has 3.7GW of renewable generation in operation or under construction, which includes 2.7GW of hydro, 708MW of wind, and 310MW of solar.

The seller – BNDESPar is the investment arm of the Brazilian national development bank, BNDES.

The transaction will increase AES’ stake in AES Tietê to 42.85%, besides strengthening its renewable portfolio and reinforcing the progress it is making towards reaching its decarbonization targets. As a part of the deal, AES Brazil will purchase 73.8 million units of AES Tietê at BRL 17.15 per unit.

AES to buy BNDESPar’s 18.5% stake in Brazilian power utility AES Tietê. Image courtesy of seagul from Pixabay.

Andrés Gluski – AES Corporation President and CEO said: “By increasing our ownership in AES Tietê’s 3.7 GW platform of renewables, we are reinforcing our commitment to reduce our total generation from coal to less than 30%.

“Following this transaction, we plan to move AES Tietê’s listing to the Novo Mercado, the highest corporate governance segment of companies listed on the Brazilian stock exchange, which is expected to further unlock the value of AES Tietê for the benefit of all shareholders.”

The deal is subject to completion of final documentation and is likely to be closed in Q3 2020.