socialmedian: AES raising capital with China Investment Corp.

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AES raising capital with China Investment Corp.

Source: Wall Street Journal

Nov 06, 2009

Summary

NEW YORK (MarketWatch) -- AES Corp. said it's raising $1.58 billion in new capital as part of a binding stock purchase agreement with a wholly-owned investment subsidiary of China Investment Corp. (CIC). AES said the new equity will fund growth opportunities and extend its reach in the global power sector. CIC will acquire 125.5 million shares of AES stock for $12.60 a 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, with headquarters in Arlington, Virginia, owns and operates a diverse portfolio of power generation and distribution businesses in 29 countries. More than two-thirds of AES' revenue is generated outside of the United States. AES seeks 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 th

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