Summary
Xcel Energy Inc. announced the divestiture of its Argentine subsidiary, Xcel Energy Argentina Inc., and its related energy assets. The sale includes Corporacion Independiente de Energia S.A. (CIESA), which owns the Central Piedra Buena power generation facility, and IPC Operations Limited, an energy services company. This strategic move signals a reduction in Xcel Energy's international operational footprint. The sale to Bell Investments and Albanesi S.A. is valued at approximately $26 million, with a portion held in escrow to cover potential indemnity obligations. Additionally, Xcel Energy Argentina received a capital redemption of approximately $21 million from CIESA. The company anticipates a minor after-tax gain, less than one cent per share, to be recognized in the second quarter of 2004, reflecting the completion of this transaction.
Key Highlights
- 1Xcel Energy Inc. has completed the sale of its Argentine subsidiary, Xcel Energy Argentina Inc.
- 2The sale includes CIESA, owner of the 620 MW Central Piedra Buena power facility, and IPC Operations Limited, an energy services company.
- 3The transaction is valued at approximately $26 million.
- 4$15 million of the purchase price is held in escrow until Q1 2005 for indemnity obligations.
- 5Xcel Energy Argentina also received a $21 million capital redemption from CIESA.
- 6The sale is expected to result in an after-tax gain of less than $0.01 per common share.
- 7This divestiture represents a reduction in Xcel Energy's international operations.