Aluminum behemoth Alcoa Inc. (NYSE: AA) has agreed to sell a portfolio of hydroelectric generating stations to Brookfield Renewable Energy Partners (TSE: BEP.UN) for a total enterprise value of $600 million.
Under the agreement, New York-based Alcoa will sell Tapoco, a four-station hydroelectric project, in Tennessee and North Carolina. Brookfield Renewable will own roughly 25 percent interest and will manage and integrate the assets into its North American operating platform.
The portfolio is expected to contribute 378 megawatts of capacity and around 1.4 million megawatt hours of generation annually.
Tapoco, which was originally developed by Alcoa to provide power for its aluminum smelting and rolling mill operations, was granted a 40-year operating license by the Federal Energy Regulatory Commission in 2005.
Brookfield's portfolio is primarily hydroelectric and totals roughly 5,000 megawatts of installed capacity.
J.P. Morgan (JPM) advised Alcoa on the deal, which is expected to close before the end of 2012.
On Friday, Alcoa stock added 2.00 percent and Brookfield shares rose 1.7 percent.