HOUSTON, Dec. 7, 2000 (PRNewswire) Reliant Energy (NYSE: REI), announced today that it has completed the sale of its interest in Light Servicos de Eletricidade S.A. (Light) to The AES Corporation and EDF International S.A. for $430 million.
An AES subsidiary purchased approximately 30% of Reliant Energy's shares in Light, while EDF purchased the remainder. Light and its subsidiary, Eletropaulo Metropolitana Eletricidade de Sao Paulo S.A., together serve approximately 7.4 million customers in Rio de Janeiro and Sao Paulo, Brazil.
Reliant Energy held its shares in Light through subsidiaries that acquired an interest of approximately 11.7 percent as part of a consortium, which included AES and EDF. The consortium purchased a majority ownership in Light when the Brazilian government privatized the company through an auction in May 1996. In April 1998, Light purchased 75 percent of the common stock of Metropolitana.
The Light investment represented Reliant Energy's entire interest in Brazil. The sale is part of the company's plan, announced in December 1999, to divest its Latin American investments, which are primarily regulated energy delivery businesses, in order to focus on its competitive energy services businesses in the U.S. and Western Europe.
In the past two months, Reliant Energy completed the sale of its interests in El Salvador and in two electric distribution companies in Colombia.
The sale of Reliant Energy's remaining investment in Colombia is expected to close by the end of the year, completing the divestiture of the vast majority of the company's Latin American investments.
Reliant Energy, based in Houston, Texas, is an international energy services and energy delivery company with $20 billion in annual revenue and assets totaling more than $28 billion.
Reliant Energy has a wholesale energy trading and marketing business that ranks among the top five in the U.S. in combined electricity and natural gas volumes and has a presence in most of the major power regions in the U.S. Reliant Energy also has power generation and wholesale trading and marketing operations in Western Europe.
The company has more than 27,000 megawatts of power generation in operation in the U.S. and Western Europe and has announced acquisitions and development projects that will add another 4,000 megawatts. Reliant Energy has marketing and distribution operations serving nearly 4 million electricity and natural gas customers in the U.S., interests in power distribution operations in Latin America, and a telecommunications business serving the Houston area.
For more information about Reliant Energy, visit the company's web site at www.reliantenergy.com.