GIP and EQT Are Nearing a Deal to Acquire Power Firm AES
BlackRock Inc.’s Global Infrastructure Partners LP and EQT AB are in advanced talks to acquire power company AES Corp., according to people familiar with the matter.
A transaction could be announced as soon as next week, said the people, who asked to not be identified because the talks are private.
Shares in AES have risen more than 55% in New York trading over the last 12 months, giving the company a market value of about $11.6 billion. The company on Friday rescheduled its full-year earnings for March 3.
A final agreement hasn’t been reached and details including the valuation and timing could still change, the people said. Spokespeople for GIP and EQT declined to comment. A representative for AES didn’t respond to request for comment.
Investors view power providers such as publicly traded utility AES as key beneficiaries of surging electricity demand from data centers running artificial intelligence applications. However, AES’ share price had lagged that of its competitors despite a focus on providing renewable power to developers including Google, Microsoft Corp. and Amazon.com Inc.
Arlington, Virginia-based AES had explored strategic options after receiving takeover interest from infrastructure investors last year. In February, Bloomberg News reported that GIP and EQT had teamed up to bid on the company.
AES executives have said that public markets are undervaluing the company, which owns a fleet of renewable generation equipment, including wind and solar, as well as natural gas and coal assets and a utility in both Indiana and Ohio.
GIP is one of the world’s most prolific infrastructure investors and in the last 12 months has led transactions including a $40 billion acquisition of Aligned Data Centers and an $11 billion lease deal involving Saudi Aramco’s natural gas facilities. Led by founding partner Adebayo Ogunlesi, the firm manages about $170 billion in assets and its equity portfolio companies generate combined annual revenue of $71 billion, its website shows.
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