Global Infrastructure Partners nears $38B deal to purchase AES - FT

[High Voltage Electric Power Lines At Sunset]
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AES Corp. (NYSE:AES [https://seekingalpha.com/symbol/AES]) +14.3% pre-market Wednesday following a _Financial Times_ report that BlackRock's (BLK [https://seekingalpha.com/symbol/BLK]) Global Infrastructure Partners is set to acquire [https://www.ft.com/content/009d96c8-db70-4eee-ab7f-4bb59bacb86e] the utility company in the coming days, in what would be one of the largest infrastructure takeovers of all time.

The deal reportedly would value AES (NYSE:AES [https://seekingalpha.com/symbol/AES]), which owns and operates power plants across the U.S. and in 13 other countries, at ~$38 billion including its $29 billion in debt; the company's market capitalization stands at $9.4 billion, implying an enterprise value of more than $38 billion.

Shares of AES (AES [https://seekingalpha.com/symbol/AES]) have dropped more than 30% during the past year, as investors have cooled on the company because of its focus on renewable energy, but renewable energy grids play a crucial role in supplying power to data centers.

GIP, which was acquired by BlackRock (BLK [https://seekingalpha.com/symbol/BLK]) last year, has a history with the utility sector, striking a $6.2 billion deal last year to take public utility company Allete private.

MORE ON AES CORP.

* AES Corporation: Significant Upside Potential Despite Not Considering A Takeover [https://seekingalpha.com/article/4825018-the-aes-corporation-stock-significant-upside-potential-despite-not-considering-a-takeover]
* AES In An Era Of Durable Data-Center Demand [https://seekingalpha.com/article/4817463-aes-in-an-era-of-durable-data-center-demand]
* AES Still Offers A Risk-Reward Play [https://seekingalpha.com/article/4814185-aes-still-offers-a-risk-reward-play]