Duke Energy completes sale of international businesses

The company is exiting the Latin American market to focus on its domestic US regulated core business. Duke Energy announced the sale of its assets in the six countries to I Squared Capital and the sale of its Brazil assets to China Three Gorges Corp. in October 2016.

"We are pleased to have closed this transaction so quickly," said Duke Energy Chairman, President and CEO Lynn Good. "The sale of the Brazilian assets is expected to be completed in the near future."

The transaction is expected to generate available cash proceeds of approximately US$1 billion, excluding transaction costs and subject to working capital adjustments, which will be used to reduce Duke Energy holding company debt. Existing federal attributes will result in no immediate US federal level cash tax impacts to the company.

Duke Energy assets that I Squared Capital is acquiring include a portfolio of hydroelectric and thermal power plants, totalling 2300 MW, plus transmission infrastructure and natural gas processing facilities. Duke Energy's 25% equity investment in National Methanol Company – a Saudi Arabian regional producer of methanol and methyl tertiary butyl ether (MTBE), a gasoline additive – is not included in the sales to I Squared Capital and China Three Gorges Corp.

Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/21122016/duke-energy-completes-sale-of-international-businesses/