AES to sell stake to China's CIC for $1.58 billion
(Reuters) - AES Corp (AES.N) said it will raise $1.58 billion by selling a nearly 15 percent stake in the company to a unit of China Investment Corp (CIC), and the power company posted a higher third-quarter profit.
AES, which said CIC will acquire 125.5 million shares of its stock for $12.60 apiece, also signed a letter of intent with CIC to raise an additional $571 million of equity for a nearly 35 percent stake in its wind generation business.
In October, AES launched a 156-megawatt wind park in Bulgaria in line with its plans to boost renewable energy.
Separately, AES upped 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 3 percent at $14.25 Friday late morning on the New York Stock Exchange. (Reporting by Adveith Nair in Bangalore; Editing by Anne Pallivathuckal)
