AES To Sell Itabo Power Plant To Grupo Linda For $110 Mln - Quick Facts

(RTTNews) - Power company AES Corp. (AES) announced Tuesday an agreement to sell 100% of its equity interest in the 295 MW Itabo power plant in San Cristobal, Dominican Republic to Grupo Linda, a Dominican-based conglomerate, for net equity proceeds of $110 million.

AES has owned and operated the Itabo facility, which includes a 260 MW coal-fired plant, and a 35 MW gas turbine, for more than two decades. Grupo Linda has co-owned AES Dominicana, AES' generation and natural gas business in the Dominican Republic, with AES since 2014.

The sale of Itabo will enable AES to continue to decarbonize its portfolio, while simultaneously strengthening its relationship with Grupo Linda and reinforcing its commitment to strategic partnerships in the region.

The closing of this transaction, subject to regulatory approvals and customary closing conditions, is expected in the fourth quarter of 2020.

In the Dominican Republic, AES will continue to own and operate 697 MW of generation capacity, as well as a regasification facility with a 70 TBTU LNG storage tank.

The sale of Itabo was previously assumed in the Company's 2020 guidance and longer-term expectations. Accordingly, the Company is reaffirming its 2020 adjusted earnings guidance of $1.32 to $1.42 per share, and its expectation for average annual growth of 7 to 9 percent in adjusted earnings per share through 2022.

On average, analysts polled by Thomson Reuters expect the company to report earnings of $1.38 per share for the year. Analysts' estimates typically exclude special items.