The AES Corp., a power-generating company based in Arlington, Va., has raised $1.58 billion of new equity through a stock purchase agreement with a wholly owned investment subsidiary of China Investment Corp. (CIC).
At close, CIC will acquire 125.5 million shares of AES stock for $12.60 per share for an approximate 15% stake in the company. AES also announced the signing of a letter of intent with CIC to raise an additional $571 million of equity for an approximate 35% interest in its wind generation business.
AES says it intends to invest in high-growth areas of the power sector, including renewable energy and emerging markets. CIC is a long-term institutional investor operated on a commercial basis. Following the closing, CIC will nominate a director to join the AES board, which currently has 10 members.
The stock purchase agreement is subject to completion of regulatory reviews and receipt of applicable approvals, including the Committee on Foreign Investment in the United States and the antitrust review under the Hart-Scott-Rodino Act. Approvals are expected to be completed during the first half of 2010.
SOURCE: The AES Corp.