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Duke Energy to sell Brazilian holdings to China Three Gorges for $1.2bn

Staff Writer |
Duke Energy has reached an agreement to sell its holdings in Brazil to China Three Gorges Corporation (CTG) for approximately $1.2 billion in cash and the assumption of debt.

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The after-tax proceeds from the transaction are expected to be used to reduce Duke Energy holding company debt.

The company began the process of exiting its International Energy business segment in February 2016. Duke Energy International owns 4,400 megawatts (MW) of power generation facilities and engages in sales and marketing of electric power, natural gas and natural gas liquids in Central and South America.

CTG is a clean energy group focused on large-scale hydropower development and operation. CTG is also engaged in renewable energy businesses including wind and solar power.

Present in 40 countries, CTG is the world´s largest producer of hydroelectric power with an installed capacity of about 100 gigawatts, both under operation and construction.

The completion of the transaction is conditioned on approvals in Brazil from the National Agency of Electrical Energy (Agência Nacional de Energia Elétrica) and the Brazilian Antitrust Agency (Conselho Administrativo de Defesa Economica) and the required approvals by Chinese authorities and other conditions precedent. Closing is expected to occur in two to four months.

Duke Energy Brazil owns 2,090 megawatts of power generation facilities.

It has eight hydroelectric plants with 2,057 megawatts of capacity located on the border between the states of Sao Paulo and Parana and owns two small hydroelectric plants, each with a capacity of 16.5 megawatts, located on the Sapucai Mirim River in northern Sao Paulo State.


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