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AES Shares Soar After Reports of Sale Talks With BlackRock and Brookfield

The utility’s shares jumped over 15% on takeover buzz after two years of steep declines

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Overview

  • AES is conducting a strategic review that includes exploring a potential sale following interest from infrastructure investors
  • BlackRock’s Global Infrastructure Partners unit and Brookfield Asset Management are among the parties studying bids for the company
  • Its stock had lost about half its value over the past two years and was down roughly 13% this year before climbing 13-16% on Wednesday
  • AES owns a portfolio of wind and solar farms and operates utilities in Indiana and Ohio while supplying renewable power to Microsoft, Alphabet and Amazon
  • The company carries around $31 billion in debt against a roughly $7.9 billion market capitalization, underscoring its high leverage