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Subsequent Events
3 Months Ended
Sep. 30, 2011
SUBSEQUENT EVENTS

20. SUBSEQUENT EVENTS

On October 3, 2011, the Company completed the placement of $1.25 billion aggregate principal amount senior notes with Wells Fargo Bank N.A. See Note 8―Debt, Non-Recourse Debt for further information.

In July 2011, a subsidiary of the Company entered into an agreement to sell its ownership interest in two telecommunication companies in Brazil. The Company held approximately 46% ownership interest in these companies through the subsidiary. The transaction closed on October 31, 2011 and the subsidiary received approximately R$1,522 million ($901 million), subject to customary purchase price adjustments. The estimated gain on the sale before noncontrolling interests and taxes is approximately R$1,333 million ($789 million), subject to final purchase price adjustments.

On October 20, 2011, a subsidiary of the Company signed a share sale agreement with Electrabel International Holdings B.V. (“EIH”), a subsidiary of GDF SUEZ S.A. (“GDFS”) for the sale of 80% of its interest in the wholly-owned holding company that holds the Company's interest in AES Energia Cartagena S.R.L. (“AES Cartagena”), a 1,199 MW gas-fired generation business in Spain, for 172 million ($234 million), subject to customary purchase price adjustments. AES owns approximately 70.81% of AES Cartagena through this holding company structure. Under the terms of the sale agreement, EIH has an option to purchase AES' remaining 20% interest in the holding company for a fixed price of 28 million ($38 million) during a five month period beginning 13 months from the date the sale closes. Subject to regulatory and lenders' approvals, the sale is expected to close by the end of 2011. Concurrent with the sale, GDFS agreed to settle the outstanding arbitration between the parties regarding certain emissions costs and other taxes that AES Cartagena sought to recover from GDFS as energy manager under the existing commercial arrangements and to pay €58 million ($79 million) to AES Cartagena for such costs incurred by AES Cartagena during the period up to December 31, 2010 and additional amounts for such costs incurred by AES Cartagena during the period from January 1, 2011 until closing of the sale. However, the settlement of the arbitration is contingent on consummation of the sale. See Note 9Contingencies and Commitments for further information.

Subsequent to September 30, 2011, the Company continued to repurchase stock under the stock repurchase program announced on July 7, 2010. The Company has repurchased 5,554,185 shares at a cost of $54 million subsequent to September 30, 2011, bringing the cumulative total through November 3, 2011 to 33,924,805 shares at a total cost of $378 million (average price of $11.16 per share including commissions). For additional information, see Note 11—Equity.