RTTNews | Jul 29, 2020 09:55AM EDT

09:55 Wednesday, July 29, 2020 (RTTNews.com) - AES Corp. (AES) said that its wholly-owned subsidiary, AES Holdings Brazil Ltda's has agreed to acquire an 18.5% economic interest in AES Tiet S.A from BNDES Participaes S.A. for a total consideration of BRL $1.27 billion or $246 million. Once the transaction closes, AES will own 42.85% of the shares of AES Tiet.

As a part of the deal, AES Brazil will buy 73.8 million units of AES Tiet at BRL $17.15 per unit, for total of BRL $1.27 billion. The transaction is expected to close in the third quarter of 2020.

The transaction will be funded primarily with already secured non-recourse debt financing from a consortium of Brazilian banks.

The acquisition is expected to be $0.01 to $0.02 per share accretive to AES' annual earnings in 2020 and thereafter.

Following closing, AES will propose the migration of AES Tiet to the Novo Mercado, the listing class with the highest governance level on the Brazilian stock market, in order to gain greater liquidity and value for the shares.

Read the original article on RTTNews ( https://www.rttnews.com/3115609/aes-brazil-to-buy-18-5-stake-in-aes-tiet-from-bndes-for-246-mln.aspx)

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