Firm to buy Brazil power gen­er­a­tion fa­cil­i­ties

China Daily (USA) - - FRONT PAGE - By ZHENG XIN in Beijing zhengxin@chi­

The builder and op­er­a­tor of the world’s largest dam, China Three Gorges Cor­po­ra­tion, has agreed to ac­quire Duke En­ergy’s 2,090-megawatt busi­ness in Brazil for $1.2 bil­lion.

The trans­ac­tion is ex­pected to be com­pleted in the first half of 2017, said Duke En­ergy, the big­gest US power com­pany by gen­er­a­tion ca­pac­ity.

The com­ple­tion of the trans­ac­tion is con­di­tioned on ap­provals from Brazil­ian elec­tri­cal en­ergy and an­titrust agen­cies as well as the Chi­nese au­thor­i­ties, it said.

“This is an­other im­por­tant step for­ward in driv­ing our strat­egy to fo­cus on our core do­mes­tic reg­u­lated busi­ness, and it’s also a clear win for China Three Gorges Cor­po­ra­tion, which is ac­quir­ing qual­ity op­er­a­tions,” said Lynn Good, pres­i­dent, CEO and chair­man of Duke En­ergy.

“We will work with the buyer to ob­tain the ap­provals nec­es­sary to close the trans­ac­tion while con­tin­u­ing to safely op­er­ate the Latin Amer­i­can plants.”

“This trans­ac­tion is an­other im­por­tant step in our strat­egy to be­come a rel­e­vant clean en­ergy com­pany in Brazil. We are pleased with the qual­ity of as­sets, which are be­ing op­er­ated in har­mony with lo­cal com­mu­ni­ties and the en­vi­ron­ment,” says Li Yin­sheng, CEO of CTG Brasil.

With this ac­qui­si­tion, CTG strength­ens its Brazil­ian sub­sidiary, as a top-tier clean en­ergy gen­er­a­tor in Brazil. Af­ter the ac­qui­si­tion is com­plete, CTG Brasil will in­crease its clean en­ergy gen­er­a­tion port­fo­lio by 2.27 GW, reach­ing a to­tal of 8.27 GW of ca­pac­ity un­der its man­age­ment and on pro­por­tional eq­uity hold­ings.

Good said the com­pany is also un­der­go­ing sales ne­go­ti­a­tions on Duke’s re­main­ing as­sets in Cen­tral and South Amer­ica, with an ad­di­tional an­nounce­ment ex­pected to fol­low.

Af­ter-tax pro­ceeds from the trans­ac­tion are ex­pected to be used to re­duce Duke En­ergy hold­ing com­pany debt, Duke En­ergy said.

The com­pany had longterm debt, in­clud­ing items, of around $39.93 bil­lion as of June 30, ac­cord­ing to Fi­nan­cial Re­view.

De­spite its eco­nomic slow­down, Brazil has been a sig­nif­i­cant mar­ket for Three Gorges Cor­po­ra­tion, which has in­vested in seven hy­dro­elec­tric projects and 11 wind power projects by the end of this Jan­uary.

Three Gorges Cor­po­ra­tion, a clean en­ergy group fo­cus­ing on large-scale hy­dropower.


China Three Gorges Cor­po­ra­tion, was re­spon­si­ble for the con­struc­tion of the Three Gorges Dam in China (above).

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