Arlington, VA, June 19, 2006 — The AES Corp. announced it has reached an agreement with the Brazilian National Development Bank (BNDES) for AES to retain full ownership of AES Sul, a regulated utility serving approximately one million customers in the state of Rio Grande do Sul in southern Brazil, pending finalization of legal documentation.
As part of the agreement, BNDES’ call option to acquire a majority economic interest in Sul, previously granted as part of the 2004 restructuring of AES’s Brazilian operations, will be terminated.
In addition, AES will pay BNDES $15 million and contribute its 100% interest in AES Infoenergy Ltda., a commercial energy trading company, to Brasiliana Energia S.A. (Brasiliana), a holding company jointly owned by AES and BNDES. AES controls Brasiliana through majority ownership of the company’s voting shares, while BNDES owns a majority economic interest of 53.85%, including voting and non-voting preferred shares.
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