GIP and EQT to Acquire AES
A private equity consortium led by Global Infrastructure Partners and EQT has agreed to acquire clean energy platform AES. The deal is designed to fund AES's growth beyond 2027, with its regulated utilities in Indiana and Ohio remaining locally managed carve-outs.
The take-private deal is valued at an enterprise value of approximately $33.4 billion, with a $10.7 billion equity value. The consortium, which also includes the California Public Employees' Retirement System (CalPERS) and the Qatar Investment Authority (QIA), will pay $15.00 per share in cash. This price represented a 40.3% premium to the 30-day volume-weighted average share price before the potential acquisition was first reported. The entire purchase will be funded with equity from the consortium, and the deal includes the assumption of AES's existing debt. This move to take AES private is intended to provide the company with enhanced financial flexibility to accelerate its growth strategy. AES stated that without this transaction, it would have likely needed to reduce or eliminate dividends or issue substantial new equity to fund its growth beyond 2027. A primary driver for the acquisition is the increasing demand for electricity, largely fueled by the power requirements of data centers for artificial intelligence applications. AES is seen as well-positioned to capitalize on this trend, holding contracts to supply power to major technology firms. Prior to the deal, some analysts noted that AES's valuation had historically traded at a discount compared to its peers, partly due to a weaker balance sheet and significant international exposure. The transaction will see AES's common stock delisted from the New York Stock Exchange. However, its regulated utilities, AES Indiana and AES Ohio, which serve 1.1 million customers, will continue to be locally operated and managed entities. The acquisition is not expected to affect customer rates for these regulated businesses. The deal is anticipated to close in late 2026 or early 2027, pending approvals from AES stockholders and regulatory bodies.
