The AES Corporation (NYSE:AES) today announced it has expanded into Turkey through the acquisition of a 51% interest in IC ICTAS Energy Group (“IC Energy”), a leading Turkish developer and producer of hydroelectricity. IC Energy currently owns and operates 26 MW of hydroelectric power capacity, and has an additional 390 MW of hydro power capacity under development. The remaining 49% of IC Energy will continue to be owned by IC Investment Holdings A.S. Financial terms of the transaction were not disclosed.
“Through this acquisition, AES gains an immediate foothold in one of Europe’s fastest growing economies, which is experiencing significantly increased demand for electricity,” said AES President and Chief Executive Officer Paul Hanrahan. “This will be an excellent platform for future expansion in Turkey and the adjacent region, and we are fortunate to be partnering with the well-established, experienced and highly professional IC Energy team.”
AES’s move into Turkey, which expects an additional 3,000 MW of new capacity to come on line every year through at least 2015, furthers the Company’s strategy to focus its core business expansion on select high growth markets.
“Southern Europe is an important region for AES, given the area’s tremendous growth potential,” said John McLaren, AES Executive Vice President and President, Europe, CIS and Africa region. “In addition to our venture in Turkey, our presence in this region also includes two projects in Bulgaria: a 670 MW power plant that recently began construction and an investment in a 120 MW wind development project.”
Renewable energy sources, which include hydroelectricity, biomass and wind, represent nearly 20% of AES’s global generation portfolio.
About AES
AES is one of the world’s largest global power companies, with 2006 revenues of $12.3 billion. With operations in 27 countries on five continents, AES’s generation and distribution facilities have the capacity to serve 100 million people worldwide. Our 13 utilities amass annual sales of over 73,000 GWh and our 121 generation facilities have the capacity to generate approximately 40,000 megawatts. Our global workforce of 32,000 people is committed to operational excellence and meeting the world’s growing power needs. To learn more about AES, please visit www.aes.com or contact AES media relations at media@aes.com.
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This news release contains forward-looking statements within the meaning of the Securities Act of 1933 and of the Securities Exchange Act of 1934. Such forward-looking statements include, but are not limited to, those related to future earnings, growth and financial and operating performance. Forward-looking statements are not intended to be a guarantee of future results, but instead constitute AES’s current expectations based on reasonable assumptions. Forecasted financial information is based on certain material assumptions. These assumptions include, but are not limited to, continued normal levels of operating performance and electricity volume at our distribution companies and operational performance at our generation businesses consistent with historical levels, as well as achievements of planned productivity improvements and incremental growth investments at normalized investment levels and rates of return consistent with prior experience.
Actual results could differ materially from those projected in our forward-looking statements due to risks, uncertainties and other factors. Important factors that could affect actual results are discussed in AES’s filings with the Securities and Exchange Commission, including, but not limited to, the risks discussed under Item 1A “Risk Factors” in AES’s 2006 Annual Report on Form 10-K. Readers are encouraged to read AES’s filings to learn more about the risk factors associated with AES’s business. AES undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
