On Friday, electricity generator and distributor AES (NYSE:AES) announced its exit from the Ukrainian power market. The company has agreed to sell its majority interests in two local power distribution businesses, AES Kyivoblenergo and AES Rivneoblenergo, to Netherlands-based VS Energy International.
In a statement, AES characterized its move as an exit from a market that was "not part of our strategic vision" and "another step in the process to simplify our structure so we can focus on creating value in markets where we have a compelling competitive advantage." AES continues to operate as a power generator and distributor in more than two dozen countries across Latin America, Africa, North America, Europe, the Middle East, and Asia.
The transaction is slated to close by midyear. Financial details of the sale were not disclosed.