Selling power

The AES Corporation is to sell its ownership interest in Medway Power to Scottish and Southern Energy for £89.8m in cash.

The AES Corporation has inked an agreement with SSE Generation Limited, a subsidiary of Scottish and Southern Energy (SSE), to sell its ownership interest in Medway Power Limited (MPL) for £89.8m in cash.

In addition, SSE has assumed net debt in Medway of £140.9m.

SSE already owns 37.5% of the equity interests in Medway and will now become the sole owner of the business, which comprises a 700MW combined cycle gas turbine (CCGT) power station on the Isle of Grain in Kent.

SSE will also acquire AES Medway Operations (AESMO), a wholly-owned subsidiary of AES, which operates and maintains the power station, for £11.7m in cash. It will assume the full responsibility for the management and operation of the station.

Completion of the transaction is subject to certain third party approvals. SSE expects the acquisition to be completed by early November.