AES signs agreement to acquire minority stake in AES Tietê

AES Corporation, through its wholly-owned subsidiary AES Holdings Brazil Ltda, has agreed to acquire an 18.5% economic interest in AES Tietê S.A from BNDES Participações S.A.'s (BNDESPar). Under the terms of the acquisition, AES Brasil will purchase for a total consideration of BRL1.27 billion (US$246 million). This transaction will be funded primarily with already secured non-recourse debt financing from a consortium of Brazilian banks.

Once this transaction closes, AES will own 42.85% of the shares of AES Tietê. Following closing, AES will propose the migration of AES Tietê to the Novo Mercado, the listing class with the highest governance level on the Brazilian stock market, in order to gain greater liquidity and value for the shares.

As a part of this transaction, AES Brazil will buy 73.8 million units (five shares per unit) of AES Tietê at BRL17.15 (US$20 million) per unit. This transaction is subject to completion of final documentation and is expected to close in the third quarter of 2020.

AES Tietê has 3.7 GW of renewable generation in operation or under construction, consisting of 2.7 GW of hydro, 708 MW of wind, and 310 MW of solar.