Summary
Duke Energy Corporation (DUK) has completed the sale of its Latin America Subsidiaries for approximately $1.2 billion in enterprise value, including the assumption of debt. These subsidiaries hold significant generation and infrastructure assets in Peru, Chile, Argentina, Guatemala, El Salvador, and Ecuador. The transaction, finalized on December 20, 2016, was executed with entities controlled by I Squared Capital. The sale is expected to yield around $1 billion in cash proceeds after accounting for transaction costs and working capital adjustments. This cash will be primarily utilized to reduce holding company debt. Notably, Duke Energy anticipates no immediate U.S. federal-level cash tax impacts due to existing federal attributes, which is a positive for the company's immediate cash position.
Key Highlights
- 1Completion of sale of Duke Energy's Latin America Subsidiaries on December 20, 2016.
- 2Total enterprise value of the sale is approximately $1.2 billion, including assumed debt.
- 3The sale involves hydroelectric and natural gas generation capacity, transmission, and natural gas processing facilities across six Latin American countries.
- 4The buyer is a consortium of investors led by I Squared Capital.
- 5Expected net cash proceeds of approximately $1 billion are anticipated to be used for debt reduction at the holding company level.
- 6No immediate U.S. federal-level cash tax impacts are expected due to existing federal attributes.