AES Corporation (NYSE: AES) announced on November 30 that an agreement had been reached with Sev.en Global Investments to sell its 51 per cent equity stake in the Mong Duong 2 coal-fired plant.
The 1,242 MW plant has been in operation since 2015, delivering power to Hanoi and northern Vietnam under a 25-year Power Purchase Agreement with state-owned utility Vietnam Electricity.
The deal is in line with AES' intentions to sell the majority of its coal assets by the end of 2025 but is pending approval from the government of Vietnam and the Ministry of Industry and Trade.
"AES values its strong business relationship with Vietnam, where we have been a strategic partner delivering reliable power while supporting the country's long-term energy transition goals," said Juan Ignacio Rubiolo, executive vice president and president of energy infrastructure at AES.
"This sale would advance AES' low-carbon goals while enabling us to continue to play a role in the advancement of energy solutions to meet growing demand," he added.
Based in the Czech Republic, Sev.en is a family-owned company with expertise in developing and operating conventional power plants and mining assets around the world.
AES is continuing to develop the 450 TBTU Son My liquefied natural gas terminal with PetroVietnam Gas, and the 2,250 MW Son My 2 combined cycle gas power plant.
The acquisition of Mong Duong 2 is Sev.en Global Investments' first foray into the Asian market, and it is committed to operating the plant in accordance with the existing build-operate-transfer contract to the highest environmental and safety standards.
Alan Svoboda, CEO of Sev.en Global Investments, said, "We are pleased to make this announcement. After establishing our presence in Europe, North America, and Australia, we are now entering Asia. We are proud to take over the operator role from AES, and we appreciate the strong diplomatic and business ties between Vietnam and the Czech Republic."
"We welcome this, by far the largest Czech investment in Vietnam yet. It moves our country into the top tier of foreign investors in Vietnam and Southeast Asia. I congratulate Sev.en and hope that the successful closing of this transaction will entice further Czech investments into the country," said Hynek Kmoníček, Czech Ambassador to Vietnam.
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