WASHINGTON (dpa-AFX) - Electric Utility AES Corp (AES) on Tuesday announced the launch of a secondary public offering of its about 60 million shares, all of which will be offered by Terrific Investment Corp, a unit controlled by China Investment Corp ('CIC'). AES will not receive any of the proceeds from the offering.
Morgan Stanley is acting as the underwriter for the offering.
As part of the offering, the underwriter has reserved 20 million shares to be sold to AES at a price per share equal to the price paid by the underwriter to Terrific Investment in the offering. AES will use cash on hand, and may supplement with borrowings under its revolving credit facility, to fund the purchase.
AES expects to repay any revolver borrowings upon receipt of dividends from certain of its subsidiaries expected by fiscal year end. AES has $381 million available for common stock repurchases under current authorization.
Following completion of the offering, it is expected that Terrific Investment will have fully sold its stake in AES.
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