BlackRock’s GIP and EQT to acquire utility provider AES for USD10.7b
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The news: BlackRock-owned Global Infrastructure Partners (GIP) and EQT have agreed to buy AES Corp, one of the US’ biggest listed utilities for USD10.7 billion ($15.12 billion) in cash, as it positions itself to deliver on soaring demand for electricity.
The numbers: In a statement released Monday, the consortium said that they will pay USD15 per share for AES, representing a 40% premium to the utility provider’s 30-day volume weighted average share price prior to first reports of takeover interest last July.
Including USD22.7 billion of debt, the agreement gives the deal an enterprise value of around USD33.4 billion.
The context: The acquisition is set to position both GIP and EQT to benefit from the soaring electricity needs required by computing facilities being built by tech companies to power AI technology. AES has previously inked deals with Google and Microsoft to provide renewable energy to the tech giants.
The California Public Employees’ Retirement System (CaLPERS) and Qatar Investment Authority (QIA) are also participating in the deal.
JP Morgan and Wells Fargo acted as financial advisers to AES while Goldman Sachs and Citi advised EQT.
What they said: Masoud Homayoun, head of EQT Infrastructure, said: “As one of the largest energy infrastructure investors globally, we are seeing first-hand the increasing need for a secure energy supply amid expanding power demand worldwide. EQT’s acquisition of AES will support the growth and modernization of essential energy infrastructure that underpins energy security, electrification, digitalization and resilient power systems across key markets.”
The sources: GIP press release, Bloomberg
