by Garth Meyer
AES stockholders could gain $15 per share in cash after a consortium paid $33 billion to buy the energy company, which formerly owned the Redondo Beach AES plant and its 52-acre waterfront site.
The deal is expected to close later this year or in early 2027.
“We are aware of the purchase but have no insights into any local impacts,” said Mayor Jim Light.
The Redondo Beach closed-power plant site has been mired in a bankruptcy case for the past three years, regarding a dispute over payments between the current owners and AES, which sold the property in 2020.
The private ownership group is led by Leo Pustilnikov.
AES, the overall company, could perhaps repossess the Redondo site, depending on the outcome of the legal process.
AES leadership cited a few reasons to sell the company, announced March 2.
Andrés Gluski, president and chief executive officer, said, “ … We believe this transaction maximizes value for existing stockholders and positions the company for long-term success as we continue delivering on our commitments to customers, communities and people. We look forward to partnering with the consortium, which has expressed an appreciation for the value of AES’ innovation, global reach and diverse portfolio.”
The AES board of directors approved the sale in a unanimous vote, subject to approval by stockholders and certain state, federal and foreign regulatory authorities.
“We are excited to announce our acquisition of AES, a market leader in the power generation and supply business with a long and storied history,” said Bayo Ogunlesi, chairman and chief executive officer of Global Infrastructure Partners (GIP), a part of BlackRock.
The Redondo Beach AES power plant shut down on December 31, 2023. ER
After decades of rejecting or constraining redevelopment alternatives, Redondo Beach is now left with a closed power plant site, unresolved ownership, and an active bankruptcy dispute—now layered with new institutional ownership pressure following the sale of AES—resulting in increased uncertainty, anxiety, and risk for the City.
You left out the active wetlands. The AES property is a closed power plant site with active wetlands. When AES turned off their dewatering pumps, the Old Salt Lake returned as best it could in the industrialized landscape. The Audubon Society local chapter is actively cataloging the birds thriving in the wetlands… now at over 100 species. On a recent visit, I noted fish swimming in at least a portion of the wetlands. Nature is prevailing on the site. The Coastal Commission has designated the site as having about 6 acres of active wetlands – which are now protected from development. What we do not know is how far the wetlands extends under the concrete and asphalt on the site.
So we have a shutdown powerplant and an active wetlands whose size has not been determined yet on property that has been zoned for public utility or parkland since 2010. The bankrupt developer bought the property speculating on a zoning change that hasn’t happened. He overpaid on speculation.