Power provider AES Corp. (NYSE:AES) continues to go global with a sale of a 15% stake for $1.58 billion in stock to Chinese sovereign wealth fund China Investment Corp. The deal expands AES' exposure in Asia, where it currently is very limited. Overall, AES derives a majority of its revenue from 28 countries outside the U.S.
"This is really a game changer for AES," CEO Paul Hanrahan said in a conference call. The extra money gives the Arlington, Va.-based AES the flexibility to explore mergers and acquisitions opportunities as well as possibly opens the Chinese market to targets and customers.
The deal could propel other global U.S. power providers to seek similar deals with companies from China, which has the fastest-growing economy in the world. -
Gerald Magpily
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