AES to dispose most of China assets for $134M

AES Corp  will sell a majority of its businesses in China for a total of $134 million, as it is unable to pass on higher coal costs.

The Virginia-based company will sell its 25 percent equity interest in the coal-fired Yangcheng plant and its 49 percent stake in the China Wind joint venture for $86 million.

AES also said it would sell its 49 percent interest in Jianghe Rural Electrification Development Company Ltd to its joint venture partner China Three Gorges New Energy Corp for $48 million.

The sale of about 2,727 MW gross capacity of the plants is expected to close by the second half of 2012, the company said, reports Reuters.

"Narrowing our geographic focus and investing in our core markets better positions us for long term earnings growth," Chief Executive Andres Gluski said in a statement.

AES's China operations include gas and coal-fired plants, hydropower stations and wind power capacity in provinces such as Hebei, Jiangsu, Sichuan and Zhejiang, according to a company factsheet as of November last year.