Summary
Exelon Corporation, through its subsidiary Exelon Generation Company, LLC, announced on November 6, 2006, the sale of its 49.5% ownership interests in two Mexican generating facilities, Termoeléctrica del Golfo (TEG) and Termoeléctrica Peñoles (TEP), to a subsidiary of AES Corporation. This transaction is valued at $95 million in cash, subject to working capital adjustments. Both TEG and TEP are petcoke-fired generating facilities with a capacity of approximately 230 MW each. The sale is a strategic move to divest non-core or non-strategic assets, allowing Exelon to focus on its core operations. The transaction is contingent upon approval from the Mexican antitrust commission, with an anticipated closing in the first quarter of 2007. Investors should note that this filing contains forward-looking statements and should consult Exelon's previous SEC filings for a comprehensive understanding of associated risks and uncertainties.
Key Highlights
- 1Exelon Generation Company, LLC is selling its 49.5% stake in TEG and TEP.
- 2The buyer is a subsidiary of AES Corporation.
- 3The sale price is $95 million in cash, plus working capital adjustments.
- 4TEG and TEP are two 230 MW petcoke-fired generating facilities located in Tamuín, Mexico.
- 5The transaction is subject to approval from the Mexican antitrust commission.
- 6The anticipated closing date for the sale is the first quarter of 2007.
- 7This divestiture is likely part of a strategy to streamline Exelon's asset portfolio.