AES Corporation has reached a preliminary agreement to sell its 82.14% interest in La Electricidad de Caracas (EDC) to the Bolivarian Republic of Venezuela for US$739.26M.
The terms of the MOU signed by both parties contemplates that the minority shareholders holding American Depositary Receipts or local shares will be offered equal or better economic terms than AES. Among other necessary conditions to closing, the sale is contingent upon the negotiation and execution of a mutually satisfactory definitive agreement and the completion of satisfactory due diligence. The MOU is in effect through 31 March 2007.
AES purchased a controlling interest in private electric utility EDC – which provides power to 1M customers in the Caracas metropolitan area of Venezuela – in 2000. EDC owns and operates five generation plants with a total capacity of 2616MW. These facilities collectively represent approximately 14% of the electricity consumed in Venezuela.