Upon completion, which is expected on or about January 12, 2022, AES will increase its interest in AES Andes from 66.98% to 98.13%.
The AES Corporation (NYSE: AES) today announced the positive results of the tender offer by AES’ wholly-owned Chilean subsidiary, Inversiones Cachagua SpA, for the shares of AES Andes S.A. (AES Andes) held by minority shareholders. Upon completion, which is expected on or about January 12, 2022, AES will increase its interest in AES Andes from 66.98% to 98.13%.
AES Andes has 4.4 GW in operation throughout Chile, Colombia and Argentina, with an additional 1.1 GW under construction and is working with leading mining companies to decarbonize their portfolios. AES Andes has already announced the retirement or sale of 2.2 GW of coal-fired generation and the addition of 2.4 GW of renewables. As a result of this transaction, AES Andes will have a simplified shareholder structure, which will enable the company to more efficiently execute on its large renewables pipeline to further accelerate its transformation.
“This transaction is significantly cash and earnings accretive for AES shareholders by unlocking the value of AES Andes that was not reflected in its share price,” said Andrés Gluski, AES President and Chief Executive Officer. “AES Andes has already made an impressive transition to lower its carbon footprint and become a leader in renewable development and new technologies in Chile and Colombia, very much complementing our overall global strategy and objectives.”
The tender offer was launched on December 7, 2021, and minority shareholders tendered 3,232,850,689 shares of AES Andes, equivalent to 94.35% of the offer. All conditions of the offer have been met and these shares will be purchased at the tender price of CLP 135.14 per share. The aggregate consideration for the shares acquired is USD 517 million (CLP 437 billion), to be funded through a combination of at least USD 350 million of non-recourse debt and the remainder from available corporate liquidity. Over the medium term, AES may seek to take AES Andes private if the conditions for delisting the company are met.
Source: Company Press Release