Summary
Duke Energy Corporation (DUK) has reported the completion of significant asset dispositions. On December 29, 2016, the company finalized the sale of its equity interests in Duke Energy International Brazil Holdings S.à.r.l. (DEI Brazil) for approximately $1.2 billion in enterprise value, which includes the assumption of debt. DEI Brazil comprises 2,090 megawatts of hydroelectric generation capacity in Brazil. This sale, along with the previously announced divestiture of other Latin American subsidiaries on December 20, 2016, is expected to yield approximately $1.9 billion in cash proceeds. These funds are designated for the reduction of Duke Energy's holding company debt. Notably, the company anticipates no immediate U.S. tax implications due to existing federal tax attributes. The transactions exclude Duke Energy's stake in the National Methanol Company in Saudi Arabia.
Key Highlights
- 1Completion of sale of Duke Energy International Brazil Holdings S.à.r.l. for approximately $1.2 billion enterprise value.
- 2DEI Brazil includes 2,090 megawatts of hydroelectric generation capacity.
- 3Transaction buyer is China Three Gorges (Luxembourg) Energy S.à.r.l., a subsidiary of China Three Gorges Corporation.
- 4Total expected cash proceeds from the sale of DEI Brazil and other Latin American subsidiaries amount to approximately $1.9 billion (pre-transaction costs and adjustments).
- 5Proceeds will be used to reduce Duke Energy's holding company debt.
- 6No immediate U.S. tax impacts are anticipated due to existing federal tax attributes.
- 7Duke Energy's 25% interest in National Methanol Company is excluded from these transactions.