PSEG Global enters into agreement to sell Electroandes
PSEG Global, a subsidiary of PSEG, announced today that it has entered into a definitive agreement to sell its ownership of Electroandes, a hydro-electric generation company in Peru, to a wholly-owned subsidiary of Statkraft Norfund Power Invest (SN Power) of Norway. The purchase price will total approximately $390 million, including the assumption of $106 million of debt, and closing is expected in October of this year.
“Electroandes is a strong company in an attractive market with dedicated employees. We are selling Electroandes as part of PSEG’s announced strategy of opportunistically monetizing its international assets at attractive prices. We are pleased that we were able to make the sale to a company with an excellent reputation, significant experience in hydro-electric power operations and a strong environmental focus,” said Matthew McGrath, president, PSEG Global.
PSEG indicated that the sale is expected to result in an after-tax gain which will be recorded in Discontinued Operations. After-tax net cash proceeds, including dividends paid prior to closing, are expected to total $215 to $225 million.
JP Morgan acted as financial advisor to PSEG on the transaction.
Electroandes owns and operates four hydro-generation plants with total capacity of 180 megawatts, 437 miles of electric transmission lines, and has a number of growth initiatives. It is located in the central Andean region of Peru.
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