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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (date of earliest event reported): August 20, 1999
THE AES CORPORATION
(exact name of registrant as specified in its charter)
DELAWARE 333-15487 54-1163725
(State of Incorporation) (Commission File No.) (IRS Employer Identification No.)
1001 North 19th Street, Suite 2000
Arlington, Virginia 22209
(Address of principal executive offices, including zip code)
Registrant's telephone number, including area code:
(703) 522-1315
NOT APPLICABLE
(Former Name or Former Address, if changed since last report)
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Item 5. Other Events
On August 18, 1999, the AES Corporation (the "Registrant") issued the press
release attached as Exhibit 1 to this report and incorporated herein by
reference.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
THE AES CORPORATION
Date: August 20, 1999 By /s/ William Luraschi
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(signing officer)
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FOR IMMEDIATE RELEASE CONTACT: KENNETH R. WOODCOCK
(703) 522-1315
AES TO ACQUIRE $3 BILLION DRAX POWER FACILITY IN ENGLAND
3,960 MW facility is largest coal-fired plant in western Europe
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ARLINGTON, VA, August 18, 1999 - The AES Corporation (NYSE: AES) announced today
that a subsidiary has reached agreement with National Power for the acquisition
of the Drax Power Station for (POUNDS)1.875 billion (approximately $3 billion).
The Drax station is a 3,960MW coal fired power station complete with flue gas
desulphurisation located on an 1800 acre site in northern England. It is the
largest coal-fired plant in western Europe and generates approximately 8% of the
electricity in England and Wales. Completion of the transaction is subject to a
number of conditions, including the receipt of certain regulatory approvals and
the approval of the shareholders of National Power. Closing is expected to occur
later this year, and AES expects to fund this acquisition through a combination
of non recourse project financing, corporate debt financing and corporate equity
issuance.
AES's subsidiary will acquire the shares of a newly formed company, National
Power Drax Limited, into which the assets of the station have been transferred.
In addition to the purchase of shares in National Power Drax Limited, the
facility has entered into a coal contract with National Power for the supply of
a portion of the output of Drax for the period to March 2000 and a number of
other short-term transitional technical and IT contracts related to the
operation of Drax.
Michael Armstrong, Group Manager, AES Electric, stated, "We are extremely
pleased to have won this bid. Drax is the largest, cleanest, newest and most
efficient large coal plant in England. Our company-wide Drax development team
has done an exceptional job in structuring an innovative approach to this
acquisition."
Dennis W. Bakke, President and Chief Executive Officer, commented, "We are
excited about this major addition to our existing mix of generating assets. Our
global experience with other clean coal-fired plants should allow us to enhance
the operations of this facility. Furthermore, our forthcoming experience with
Drax in the UK market should serve as a springboard to other acquisitions in
Europe."
AES is a leading global power company that currently owns or has an interest in
one hundred and five power facilities totaling over 32,000 megawatts in the
United States, Canada, Australia, Argentina, Brazil, Dominican Republic, Panama,
Mexico, Pakistan, India, Bangladesh, the Netherlands, Hungary, Kazakhstan, China
and the United Kingdom. AES also distributes electricity to nearly 14 million
customers and is also a retail marketer of heat and electricity. In addition to
having assets in excess of $10 billion, the Company has a significant number of
projects in construction or development. AES is dedicated to providing
electricity worldwide in a socially responsible way.
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Fore more general information visit our web site at www.aesc.com or contact
investor relations at [email protected]. The list AES-PR-ANNOUNCE is an
automated mailing list and can be found on the investing page of our web site.
Those who subscribe to this list will receive updates when AES issues a press
release.
