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ARLINGTON, Va., Jan. 10, 2022 /PRNewswire/ -- The AES Corporation (NYSE: AES) today announced the positive results of the tender offer by AES' wholly-owned Chilean subsidiary, Inversiones Cachagua SpA, for the shares of AES Andes S.A. (AES Andes) held by minority shareholders. Upon completion, which is expected on or about January 12, 2022, AES will increase its interest in AES Andes from 66.98% to 98.13%.
AES Andes has 4.4 GW in operation throughout Chile, Colombia and Argentina, with an additional 1.1 GW under construction and is working with leading mining companies to decarbonize their portfolios. AES Andes has already announced the retirement or sale of 2.2 GW of coal-fired generation and the addition of 2.4 GW of renewables. As a result of this transaction, AES Andes will have a simplified shareholder structure, which will enable the company to more efficiently execute on its large renewables pipeline to further accelerate its transformation.
"This transaction is significantly cash and earnings accretive for AES shareholders by unlocking the value of AES Andes that was not reflected in its share price," said Andrés Gluski, AES President and Chief Executive Officer. "AES Andes has already made an impressive transition to lower its carbon footprint and become a leader in renewable development and new technologies in Chile and Colombia, very much complementing our overall global strategy and objectives."
The tender offer was launched on December 7, 2021, and minority shareholders tendered 3,232,850,689 shares of AES Andes, equivalent to 94.35% of the offer. All conditions of the offer have been met and these shares will be purchased at the tender price of CLP 135.14 per share. The aggregate consideration for the shares acquired is USD 517 million (CLP 437 billion), to be funded through a combination of at least USD 350 million of non-recourse debt and the remainder from available corporate liquidity. Over the medium term, AES may seek to take AES Andes private if the conditions for delisting the company are met.
The AES Corporation (NYSE: AES) is a Fortune 500 global energy company accelerating the future of energy. Together with our many stakeholders, we're improving lives by delivering the greener, smarter energy solutions the world needs. Our diverse workforce is committed to continuous innovation and operational excellence, while partnering with our customers on their strategic energy transitions and continuing to meet their energy needs today. For more information, visit www.aes.com.
Safe Harbor Disclosure
This news release contains forward-looking statements within the meaning of the Securities Act of 1933 and of the Securities Exchange Act of 1934. Such forward-looking statements include, but are not limited to, those related to future earnings, growth and financial and operating performance. Forward-looking statements are not intended to be a guarantee of future results, but instead constitute AES' current expectations based on reasonable assumptions. Forecasted financial information is based on certain material assumptions. These assumptions include, but are not limited to, our expectations regarding the COVID-19 pandemic, accurate projections of future interest rates, commodity price and foreign currency pricing, continued normal levels of operating performance and electricity volume at our distribution companies and operational performance at our generation businesses consistent with historical levels, as well as the execution of PPAs, conversion of our backlog and growth investments at normalized investment levels and rates of return consistent with prior experience.
Actual results could differ materially from those projected in our forward-looking statements due to risks, uncertainties and other factors. Important factors that could affect actual results are discussed in AES' filings with the Securities and Exchange Commission (the "SEC"), including, but not limited to, the risks discussed under Item 1A: "Risk Factors" and Item 7: "Management's Discussion & Analysis" in AES' 2020 Annual Report on Form 10-K and in subsequent reports filed with the SEC. Readers are encouraged to read AES' filings to learn more about the risk factors associated with AES' business. AES undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Any Stockholder who desires a copy of the Company's 2020 Annual Report on Form 10-K filed February 25, 2021 with the SEC may obtain a copy (excluding Exhibits) without charge by addressing a request to the Office of the Corporate Secretary, The AES Corporation, 4300 Wilson Boulevard, Arlington, Virginia 22203. Exhibits also may be requested, but a charge equal to the reproduction cost thereof will be made. A copy of the Form 10-K may be obtained by visiting the Company's website at www.aes.com.
AES uses its website, including its quarterly updates, as channels of distribution of Company information. The information AES posts through these channels may be deemed material. Accordingly, investors should monitor our website, in addition to following AES' press releases, quarterly SEC filings and public conference calls and webcasts. In addition, you may automatically receive e-mail alerts and other information about AES when you enroll your e-mail address by visiting the "Subscribe to Alerts" page of AES' Investors website. The contents of AES' website, including its quarterly updates, are not, however, incorporated by reference into this release.
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SOURCE The AES Corporation