AES Profit Jumps, Will Sell 15% Stake To China's Sovereign Fund
DOW JONES NEWSWIRES
AES Corp.'s (AES) third-quarter profit rose 28% on stronger margins as the
power producer announced it will sell $1.58 billion in stock to China's
sovereign-wealth fund to raise capital for further international growth.
China Investment Corp. is getting a 15% stake, paying $12.60 a share. That's a
9.1% discount to Thursday's closing price.
But shares rose 1% in recent trading to $14 as AES slightly raised its 2009
earnings target--to $1.07 to $1.11 a share from $1.05 to $1.10.
AES has operations around the world and is focused most in Latin America. The
company didn't say money raised from CIC will specifically be focused in China.
Meanwhile, the two also signed a letter of intent to raise an additional $571
million of equity, with CIC getting an approximate 35% interest in its wind
generation business.
AES reported earnings of $185 million, or 28 cents a share, up from $145
million, or 22 cents, a year earlier. Excluding hedging and other impacts,
earnings fell to 26 cents from 31 cents.
Revenue fell 11% to $3.84 billion, with most of the decline because of
currency conversion.
Gross margin rose to 26.3% from 22.3% on lower fuel costs.
-By Nathan Becker, Dow Jones Newswires; 212-416-2855; nathan.becker@
dowjones.com;
(END) Dow Jones Newswires
11-06-091010ET
Copyright (c) 2009 Dow Jones & Company, Inc.
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