NEW YORK (CNNfn) - Acquisition-hungry energy giant AES Corp. (AES) has agreed to buy the utility company CILCORP Inc. for $885 million, the companies said Monday.
AES will pay CILCORP shareholders $65 per share, after which the Peoria, Ill.-based gas and electrical provider will become a wholly-owned subsidiary of AES, the companies said.
Subject to the approval of CILCORP shareholders as well as the sanction of regulatory agencies, the companies expect the deal to close in mid-1999.
"This combination brings together CILCORP, the most competitive electric and gas supplier in Illinois, and AES, the largest global power company," said Tom Tribone, AES executive vice president. "We believe that the combined company, operating under this first-of-a-kind structure, will be a model of how the electric and gas business will be conducted in the United States in the 21st century."
Based in Arlington, Va., AES currently owns or has an interest in 90 power facilities totaling more than 27,000 megawatts in 13 countries. The CILCORP deal is the 14th major acquisition for AES so far this year.
CILCORP shares (CER) closed 1/16 lower at 53-7/16 Friday while AES (AES) gained 3/16 to 43-9/16.