DUK sells its international assets for $2.4B

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Market Price (10/10/2016): $77.06/share; ST-Target: $100/share; NIV: $110/share

  • We estimated that the sales of the international assets would generate some $2.9B in cash proceeds, but DUK sold it for $2.4B
    • DUK sold its Brazilian (~2.1GW) assets for $1.2B (~$571/KW) to the Chinese company China Three Gorges Corporation, which is the owner/operator of the world’s largest dam
    • The balance of the assets in Peru, Chile, Ecuador, Guatemala, El Salvador, and Argentina were sold to I Squared Capital for $1.2B
  • We believe that these are reasonable prices
  • DUK is pledged to repatriate the cash after paying-down debt and appropriate taxes to all of the appropriate jurisdictions

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