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Article: China: Commentary: Chinese capital aims for stake in AES.
- Article from:
- TendersInfo
- Article date:
- November 9, 2009
CopyrightCOPYRIGHT 2009 Al Bawaba (Middle East) Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: kusumv03
AES Corp, the Virginia-based global power company, proudly announced Friday it has tapped into the Mother Lode to raise capital for its expansion plans: China Investment Corp.
In exchange, CIC gets 15% stake in AES . The deal also includes a letter of intent to sell 35% of AES's wind power business to this colossal Chinese sovereign wealth fund.
This is a great deal for the Chinese. While it raises about $1.58 billion for AES, CIC is scooping up 125.5 million shares of the stock at $12.60 apiece, a fat 9% discount to AES shares' $13.86 closing price on Thursday.
The move also perfectly fits CIC's plans to use the $100 ...