Press Release Details

AES Announces Agreement to Sell AES Sul in Brazil

Jun 16, 2016

ARLINGTON, Va.--(BUSINESS WIRE)-- The AES Corporation (NYSE: AES) announced today that it has entered into an agreement to sell its 100% equity interest in AES Sul, one of its utilities in Brazil, to CPFL Energia S.A. (NYSE: CPL) for BRL1,698 million (equivalent to $464 million at the expected BRL/USD conversion rate of 3.66 at the time of closing), subject to closing price adjustments. The transaction is expected to close in the second half of 2016, subject to approval by CPFL Energia’s shareholders and customary regulatory approvals.

“The sale of our distribution company, Sul, in Brazil is yet another step we are taking to optimize our portfolio for future value creation,” said Andrés Gluski, AES President and Chief Executive Officer. “We are proud of the work we have done at Sul over the past 19 years to improve safety, systems and operations, but believe that today we can best serve our shareholders by re-deploying our capital in other businesses and to de-risk the Company.”

This sale was previously included in the Company’s 2016 guidance and 2017-2018 expectations. Additionally, the transaction will remove a total of $335 million in non-recourse debt on AES’ Balance Sheet as of March 31, 2016.

About AES

The AES Corporation (NYSE: AES) is a Fortune 200 global power company. We provide affordable, sustainable energy to 17 countries through our diverse portfolio of distribution businesses as well as thermal and renewable generation facilities. Our workforce of 21,000 people is committed to operational excellence and meeting the world’s changing power needs. Our 2015 revenues were $15 billion and we own and manage $37 billion in total assets. To learn more, please visit Follow AES on Twitter @TheAESCorp.

Safe Harbor Disclosure

This news release contains forward-looking statements within the meaning of the Securities Act of 1933 and of the Securities Exchange Act of 1934. Such forward-looking statements include, but are not limited to, those related to future earnings, growth and financial and operating performance. Forward-looking statements are not intended to be a guarantee of future results, but instead constitute AES’ current expectations based on reasonable assumptions. Forecasted financial information is based on certain material assumptions. These assumptions include, but are not limited to, our accurate projections of future interest rates, commodity price and foreign currency pricing, continued normal levels of operating performance and electricity volume at our distribution companies and operational performance at our generation businesses consistent with historical levels, as well as achievements of planned productivity improvements and incremental growth investments at normalized investment levels and rates of return consistent with prior experience.

Actual results could differ materially from those projected in our forward-looking statements due to risks, uncertainties and other factors. Important factors that could affect actual results are discussed in AES’ filings with the Securities and Exchange Commission (the “SEC”), including, but not limited to, the risks discussed under Item 1A “Risk Factors” and Item 7: Management’s Discussion & Analysis in AES’ 2015 Annual Report on Form 10-K and in subsequent reports filed with the SEC. Readers are encouraged to read AES’ filings to learn more about the risk factors associated with AES’ business. AES undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Any Stockholder who desires a copy of the Company’s 2015 Annual Report on Form 10-K dated on or about February 23, 2016 with the SEC may obtain a copy (excluding Exhibits) without charge by addressing a request to the Office of the Corporate Secretary, The AES Corporation, 4300 Wilson Boulevard, Arlington, Virginia 22203. Exhibits also may be requested, but a charge equal to the reproduction cost thereof will be made. A copy of the Form 10-K may be obtained by visiting the Company’s website at

Source: The AES Corporation

The AES Corporation

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