NEW YORK (CNNfn) - Seeking to gain a foothold in Indianapolis and the Midwest, global energy concern AES Corp. will acquire Ipalco Enterprises for $2.15 billion in stock, the companies said Monday.|
Indianapolis-based Ipalco's primary subsidy is Indianapolis Power & Light, an electric utility with 3,000 megawatts of coal-fired power plants providing retail electric service to 433,000 customers in and around Indianapolis.
AES, a developer and operator of power generation plants around the world, also gains a foothold to add plants in the Midwest and utility rights of way to develop a broadband telecommunications network, AES Chairman Dennis Bakke told the Wall Street Journal.
AES will pay approximately $25 per share for Ipalco (IPL: Research, Estimates), a 25 percent premium over Friday's closing price of $21.50. Based on recent trading prices, AES said it expects to issue about 43 million shares in the deal, or about one-half AES share for each IPALCO share.
AES (AES: Research, Estimates), which owns utilities in 16 countries, also will assume about $890 million of Ipalco debt and preferred stock.
Ipalco shareholders, the Federal Energy Regulatory Commission and the Securities and Exchange Commission must approve the deal. The companies said they expect to get these approvals and complete the deal by early 2001.