AES joins forces with Estrella-Linda Group
The AES Corporation has, through one of its subsidiaries, entered into a strategic partnership with the Estrella-Linda Group, an investor group based in the Dominican Republic.
Under this agreement, Estrella-Linda will acquire an 8% minority interest in AES’ business in the Dominican Republic for $96 million. The transaction is expected to close in the fourth quarter of 2014 and is subject to customary closing conditions.
“This transaction, at a valuation of $1.2 billion for AES Dominicana, highlights the value of our Dominican assets,” said Andrés Gluski, AES President and Chief Executive Officer. “We believe that Estrella-Linda represents a strong local player and will support our planned expansions, such as upgrading our DPP power plant. AES and Estrella-Linda are committed to bringing affordable, sustainable and reliable energy solutions to the Dominican Republic.”
Estrella-Linda is a consortium of two leading Dominican industrial groups: Estrella and Grupo Linda. The two partners manage diverse businesses, including construction services, cement, agribusiness, metalwork, plastics, textiles, paints, transportation, insurance and media.
AES’ Dominican Republic business consists of an LNG import terminal, a 319 MW combined-cycle gas-fired plant (Andres), a 236 MW open cycle gas-fired plant with potential expansion of the capacity to 358 MW in combined-cycle mode (DPP), and 50% ownership of a 295 MW coal-fired plant (Itabo).
Press Release, September 3, 2014; Image: AES