October 10, 2016 / 1:10 PM / 2 years ago

Duke Energy exits international businesses; deals valued around $2.4 billion

(Reuters) - Duke Energy Corp (DUK.N) has completed the exit of its international businesses in deals valued at about $2.4 billion, inclusive of debt, the company said on Monday, as it focuses on regulated power markets in the United States.

The company said it agreed to sell the remainder of its Latin American businesses in Peru, Chile, Ecuador, Guatemala, El Salvador and Argentina to investment manager I Squared Capital for about $1.2 billion. All the facilities in those countries total 2300 megawatts of power generation.

Earlier, Duke said it agreed to sell its Brazilian unit to clean energy company China Three Gorges Corp for about $1.2 billion. Duke Energy owns 2,090 megawatts (MW) of power generation facilities in Brazil. [nPn21ksRBa]

In February, Duke Energy said it was looking to sell its international assets to drive more stable earnings and cash flow growth from the United States.

The international business has been hurt by a weak Brazilian currency and economy, as well as drought conditions that hurt the company’s power generation capacity in the country.

The businesses, which span Argentina, Brazil, Chile, Ecuador, El Salvador, Guatemala and Peru, accounted for nearly 5 percent of Duke Energy’s total operating revenue in 2015.

Proceeds from the sales will be used to reduce debt, the company said. Duke’s long-term debt, including items, was about $39.93 billion as of June 30.

Duke’s financial advisers were Credit Suisse and J.P. Morgan and its legal adviser was Skadden, Arps, Slate, Meagher & Flom LLP.

Reporting by Anet Josline Pinto and Vishaka George in Bengaluru; Editing by Maju Samuel and David Gregorio

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