Power company AES Corp. has agreed to sell its entire interests in its Oman and Pakistan businesses for about $200 million, in order to unlock the value of its portfolio.
In a statement Sunday AES said the deal will remove $276 million of debt from its balance sheet. It will also result in a one-time charge of 16 cents per share in 2009 and a gain of 12 cents per share in 2010.
AES indirectly holds interests in the Oman and Pakistan facilities through AES Oasis, which is owned 61.1 percent by AES and 38.9 percent by the IDB Infrastructure Fund.
The sales includes AES's 35 percent stake in the 465 megawatt Barka, Oman facility and its 55 percent ownership interest in a 362 megawatt Lal Pir and 365 megawatt Pak Gen, Pakistan oil-fired facilities.
Interest in the Oman facility will be sold to ACWA Power International, a Saudi Arabian and desalination water company. AES's stake in the Pakistan facilities will be sold to a consortium led by Nishat Mills Ltd., a Pakistani industrial firm.
The transactions are expected to close during the first half of 2010.
AES said until the transactions close, the businesses will be reported as discontinued operations. In 2009, the Oman and Pakistan businesses are expected to contribute 4 cents per share to net income. In 2010, the businesses are projected to contribute net income of $15 million, or 2 cents per share.
The company said it will continue to have a presence in the Middle East and South Asia, where it will also pursue potential development opportunities.
Shares of AES rose 22 cents to $13.31 in midday trading.