Multinational energy company AES Corporation has agreed to sell a large chunk of its solar business to SunEdison, in a deal that could reach US$207 million.
SunEdison will initially pay an equity purchase price of US$165 million for AES’s 50% stake in projects in India, Europe and the US. With a generation capacity of 336MW in total, the projects are owned by Silver Ridge Power, a joint venture formed by AES and a private equity firm, Riverstone Holdings.
Under the terms of the deal, SunEdison has an option to purchase a further 50% stake held by AES in 130MW of PV projects in Italy by August 2015. Should SunEdison decide to do so, it will cost the company another US$42 million.
According to a statement by AES, it will retain its 50% stake in 55MW of projects in Puerto Rico and in Spain. The AES statement also clarified that SunEdison’s acquisitions are still subject to regulatory approval and purchase price adjustments, expected to take place in June 2014.
In the same statement, AES also said that it would be receiving the US$50 million tax equity investment made by search engine giant Google into Mount Signal, a 266MW Silver Ridge-owned project in California. The plant went online in April.
AES president and chief executive officer Andrés Gluski said that the money raised would be used to maximise returns for AES' shareholders.