(Adds deal details and company background)
Oct 10 Duke Energy Corp said it agreed
to sell its Brazilian unit to clean energy company China Three
Gorges Corp for about $1.2 billion, including debt, as it
focuses on regulated power markets in the United States.
The biggest U.S. power company by generation capacity said
it was also negotiating the sale of its remaining assets in
Central and South America.
Duke Energy owns 2,090 megawatts (MW) of power generation
facilities in Brazil. It has eight hydroelectric plants, with
2,057 megawatts of capacity located on the border between the
states of Sao Paulo and Parana.
The company also owns two small hydroelectric plants, each
with a capacity of 16.5 MW, located on the Sapucai Mirim River
in northern Sao Paulo state.
In February, Duke Energy said it was looking to sell its
international assets as it looks to drive more stable earnings
and cash flow growth from the United States.
The international business has been hurt by a weak Brazilian
currency and economy, as well as drought conditions that
affected the company's power generation capacity in the country.
The business, which spans Argentina, Brazil, Chile, Ecuador,
El Salvador, Guatemala and Peru, accounted for nearly 5 percent
of Duke Energy's total operating revenue in 2015.
Charlotte, North Carolina-based Duke Energy owns 4,400 MW of
power generation facilities and sells and markets electric
power, natural gas and natural gas liquids in Central and South
Duke Energy said it would use proceeds from the sale to
reduce its debt. The company had long-term debt, including
items, of about $39.93 billion as of June 30.
The company's financial advisers were Credit Suisse and J.P.
Morgan and its legal adviser was Skadden, Arps, Slate, Meagher &
(Reporting by Anet Josline Pinto in Bengaluru; Editing by Maju