The AES Corporation has inked two agreements to sell a substantial majority of its businesses in China for $134M in total aggregate proceeds.
As per the deal, Sembcorp Utilities will acquire a 25% interest in the 2,100MW coal-fired Yangcheng plant and 49% in the 248MW China Wind joint venture for a total of $86m.
Another $48m deal with AES joint venture partner, China Three Gorges New Energy Corporation involves selling its 49% stake in Jianghe Rural Electrification Development Company, which includes seven small hydroelectric plants, one wind farm and one co-generation plant with a total gross capacity of 379MW.
AES president and chief executive officer Andrés Gluski said the sale of these businesses is in line with the company's strategy to exit those markets where we do not have a competitive advantage.
"Narrowing our geographic focus and investing in our core markets better positions us for long term earnings growth," added Andres.
The China Wind joint venture includes four wind power assets owned through four equity joint ventures namely AES Huanghua, AES Hulunbeier Wind Power, AES Xinba'erhu Wind Power and AES Chenba'erhu Wind Power, with Chinese partner, Guohua Energy Investment Company.
The 247.5MW wind power assets involve three wind power plants in Inner Mongolia and one wind power plant in Hebei.
The transactions are expected to close in the second half of 2012 with AES' presence in China to see one hydro and one gas-fired plant, which a combined gross capacity of 75MW, or 31MW on an ownership-adjusted basis.
The AES Corporation has signed eight asset sale transactions worth $890m since last September, with six worth $756m already closed.