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AES Corp pulls out of Turkey

US firm divests 365MW worth of power assets as sell off continues.

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Istanbul
Istanbul

AES Corporation has agreed to sell its 49.62% equity interest in AES Entek Elektrik Uretimi (AES Entek), a joint venture with KOC HOLDING and AYGAZ, in Turkey, to its partners.

The sale represents 100% of the US firm’s interest in assets in Turkey, consisting of 364 MW of operating natural gas and hydroelectric facilities and its interest in a coal-fired development project, for $125mn in equity proceeds to AES.

Subject to customary regulatory approvals, this transaction is expected to close by the first quarter of 2015.

“With the sale of our Turkish assets, we will have exited nine countries and received proceeds of $2.4bn from asset sales over the past three years," said Andres Gluski, AES President and CEO.

“In line with our strategy, we have focused on simplifying our portfolio and exiting those markets where we do not have a sustainable competitive advantage.

“Active portfolio management has allowed us to prepay $1.3bn in debt and invest $817mn in our shares, while reducing our corporate overhead by one-third, or nearly $200mn.

“At the same time, we have more megawatts under construction than at any other time in AES’ thirty-three year history.”

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