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Subsequent Events
3 Months Ended
Mar. 31, 2025
Subsequent Event [Line Items]  
Subsequent Events [Text Block] SUBSEQUENT EVENTS
AES Global Insurance On April 30, 2025, the Company sold minority interests in AES Global Insurance Company, LLC (“AGIC”), AES’ captive insurance company, and AGIC Holdings, LLC (together with AGIC, the “AGIC Companies”) in exchange for $450 million in total proceeds for Class B units representing 17.5% and 18.0%, respectively, of each entity’s total outstanding units, for a combined ownership (directly and indirectly) of AGIC’s total outstanding units of 32.4% by the Class B member. The Company continues to own Class A units for the remaining economic interest in the AGIC Companies. The Class B units provide for target distribution amounts for the Class B member, with a call option for AES for years 2030 through 2035 at pre-agreed prices. Dividend payments in excess of the required rates of return will decrease the applicable redemption price.
As part of the transaction, it is required that either (i) the AGIC Companies achieve a minimum distribution target to the Class B member ranging from $145.5 million to $198.5 million over pre-defined periods of time ranging from 3 to 5 years (the “distribution period”) or (ii) AGIC achieves an average cash basis quarterly net income threshold for the period comprising the relevant distribution period and the four quarters immediately prior to the start of such distribution period. AES can make disproportionate distributions to the Class B member to meet the minimum distribution target for the distribution period. If, at the end of a distribution period, (1) such cash basis net income threshold is not met and (2) the minimum distribution target for such distribution period is not achieved, AES would be required to address the shortfall by issuing AES common stock (“Shortfall Stock”) to AGIC for the net difference between actual and targeted distributions. Certain of these distributions are subject to regulatory and the AGIC Companies Board’s approval.
As part of the quarterly diluted earnings per share calculation, AES will evaluate whether (1) average cash basis quarterly net income in a given quarter exceeds the threshold or (2) aggregate distributions made to the investor for the related distribution period exceed such target distribution amount. If either condition is met, no Shortfall Stock will be included in the diluted earnings per share calculation. Average cash basis quarterly net income for the four quarters prior to the start of the first distribution period was 56% above the threshold.
AES Ohio — On April 4, 2025, DPL LLC (formerly known as DPL Inc.) consummated the transactions contemplated by a Purchase and Sale Agreement with Astrid Holdings LP ("Investor"), a wholly-owned subsidiary of CDPQ, dated as of September 13, 2024, pursuant to which DPL LLC agreed to sell to Investor an aggregate indirect equity interest in AES Ohio of approximately 30%, with total proceeds to DPL of approximately $544 million. AES Ohio is reported in the Utilities SBU reportable segment.
Cochrane — On April 14, 2025, the Company accepted an offer to acquire the remaining 40% equity interest in Empresa Electrica Cochrane SpA (“Cochrane”) from a third-party investor. Once this transaction is completed, AES’ ownership in Cochrane will increase to 96.7%. This transaction is expected to close during the second quarter of 2025 and will be accounted for as an equity transaction with no gain or loss recognized in the consolidated statement of operations. Cochrane is reported in the Energy Infrastructure SBU reportable segment.