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UPDATE 2-AES to raise $2.15 bln from stake sales to China's CIC

Fri Nov 6, 2009 1:01pm EST

Stocks

   

* AES to sell 125.5 mln shrs at $12.60 each

Stocks  |  Mergers & Acquisitions  |  China  |  Utilities

* To sell stake in wind generation business for $571 mln * China Investment Corp unit to buy stakes

* Q3 profit rises, ups midpoint of FY adj shr view

* AES stock rises 4 pct (Recasts, adds details, updates share movement)

Nov 6 (Reuters) - AES Corp (AES.N) said it will raise about $2.15 billion by selling stakes in the company and its wind generation business to China Investment Corp (CIC).

The power company said it will sell 125.5 million shares, or a 15 percent stake, to a unit of China's sovereign wealth fund at $12.60 each, for about $1.58 billion.

AES, which is looking to boost its renewable energy capacity, also signed a letter of intent with the CIC to raise an additional $571 million of equity for a stake in its wind generation unit.

Separately, the company reported a higher third-quarter profit and raised the midpoint of its full-year adjusted profit outlook by 1 cent to $1.09 a share.

Analysts on average were looking for earnings of $1.10 for the period, according to Thomson Reuters I/B/E/S.

In August, the company had forecast 2009 adjusted earnings of between $1.05 a share and $1.10 a share.

For the latest third quarter, the company earned 28 cents a share, up from 22 cents a share last year.

Analysts were looking for a profit of 26 cents a share.

Consolidated revenue fell 11 percent to $3.84 billion, above analysts' forecast of $3.35 billion.

AES shares were up 4 percent at $14.37 Friday afternoon on the New York Stock Exchange. (Reporting by Adveith Nair in Bangalore; Editing by Anne Pallivathuckal)



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