AES has closed its equity sale with a wholly owned investment subsidiary of the China Investment Corporation (CIC). The deal raises US$1.58 billion in new capital for the company. CIC acquired 125.5 million shares of AES stock for US$12.60/share in exchange for an approximate 15% stake in the company.
Paul Hanrahan, president and CEO of AES, said, “We are extremely pleased with our new partnership with CIC. Their investment in AES provides a source of capital that allows us to take full advantage of our pipeline of investment projects and to pursue select M&A transactions. Additionally, working with CIC will expand our sources of financing in Asia, where the majority of growth in electricity demand is projected to occur.”
The transaction is subject to various regulatory reviews and has met all regulatory conditions to closing.