Duke Energy to sell international businesses to I Squared Capital for $1.2B
Duke Energy announced it has reached an agreement to sell its international businesses in Peru, Chile, Ecuador, Guatemala, El Salvador and Argentina to I Squared Capital for approximately $1.2B enterprise value. This represents the full remainder of the Latin American businesses Duke Energy is exiting. The after-tax proceeds from the transaction are expected to be used to reduce Duke Energy holding company debt. Earlier, China Three Gorges Corporation agreed to acquire Duke Energy's 2,090-megawatt business in Brazil for $1.2B enterprise value. The company began the process of exiting its International Energy business segment in February 2016. The Duke Energy businesses I Squared Capital will acquire in Peru, Chile, Ecuador, Guatemala, El Salvador and Argentina include hydroelectric and natural gas generation plants, transmission infrastructure and natural gas processing facilities, totaling 2,300 MW. The I Squared Capital transaction requires Argentina antitrust approval, however the approval is not a condition of closing. As planned, Duke Energy's 25 percent equity investment in National Methanol Company, a Saudi Arabian regional producer of methanol and methyl tertiary butyl ether, a gasoline additive, is not included in either the I Squared Capital or the China Three Gorges Corporation sale.