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Power
02 February 2011
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Local buyers step up on AEI dismemberment
Emerging markets energy operator AEI has agreed to the sale of 80% of its assets, or 10 operating companies, to seven different buyers, in a deal worth $4.8 billion. The buyers are a mixture of international utilities, financial buyers and local utilities and holding companies. The sales follow AEI’s failed attempt to close an initial public offering, which it formally abandoned nine days before the sales were announced.
Half of AEI’s proceeds will come from the sale of 99.68% of Brazilian utility Elektro to Iberdrola for $2.4 billion. Initial reports had indicated that Iberdrola was a potential buyer for all of AEI, but its main interest was in the Brazilian asset, which produced roughly R840 million ($502 million) in Ebitda in 2009. Iberdrola is set to fund the acquisition with bank debt, because using the proceeds of a tariff securitisation may be impracticable.
Sempra Energy is...
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