Power company AES Corp on Sunday said it agreed to sell its entire interests in its Oman and Pakistan businesses for about $200 million.

The deals will allow $276 million of debt to be removed from AES' consolidated balance sheet.

The transactions are expected to close in the first half of 2010 and are subject to customary purchase price adjustments and approvals.

Until the transactions close, the businesses will be reported as discontinued operations and earnings will not be reported as part of income from continuing operations.

During 2009, the Oman and Pakistan businesses are expected to contribute net income of $25 million, or 4 cents a share and to contribute subsidiary distributions of $16 million in 2009. They are projected to contribute net income of $15 million, or 2 cents per share in 2010.

The sale of the Pakistan assets is expected to result in a noncash, after-tax impairment of $107 million, or 16 a share in 2009. The Oman sale is expected to result in a noncash, after-tax gain of $78 million, or 12 cents per share, which will be recorded when the transaction closes in 2010.

Neither the impairment nor the gain will have an impact on adjusted earnings per share.

Our decision to sell the businesses is in line with our strategy to unlock the value of our portfolio. We continue to see compelling development opportunities throughout the world as countries look for more sources of affordable and sustainable power, Paul Hanrahan, AES president and CEO, said in a statement.

The businesses are being sold to two separate buyers as a result of an auction process that began in the second quarter of 2009. AES indirectly holds interests in the Oman and Pakistan facilities through AES Oasis, which is owned 61.1 percent by AES and 38.9 percent by the IDB Infrastructure Fund.

Shares of AES on Friday closed at $13.08, up 34 cents, on the New York Stock Exchange.

(Reporting by Ilaina Jonas, editing by Martin Golan)

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