MANILA, Philippines – American power firm AES Corp. sold its minority stake in Masinloc power plant to Thailand-based independent power producer Electricity Generating Public Company (EGCO) for $453 million.
AES said the 45 percent stake sale in the coal power plant is expected to make its earnings neutral in 2014 and beyond.
AES, which now reduced its stake in Masinloc to 51 percent, said the additional capital will be used for its continued management and operation of the 632 megawatt coal plant in Zambales.
The sale also includes the expansion of the existing Masinloc facility, which has about 60 megawatts of potential energy storage projects in advanced development.
"This transaction demonstrates how we are executing on our strategy, by bringing in partners to realize the value of our portfolio and capitalize on the growth potential across our markets," said AES president and chief executive Andrés Gluski.
"We see attractive growth opportunities in the Philippines and are well-positioned to invest in the expansion of our existing plant, as well as energy storage projects, with our partners," he added.
The EGCO group will own 41 percent of Masinloc plant and the International Finance Corporation will retain 8 percent.