CIC in talks to buy minority stake in AES Corp(2)

Chinese sovereign wealth fund, China Investment Corporation, is reportedly in talks to acquire a minority stake in Virginia-based power company AES Corp.

According to The Wall Street Journal CIC has plotted a deal aimed at “building an alliance” with the New York-listed company. Also on the negotiating table is believed to be a joint venture agreement whereby CIC could fund AES schemes worldwide.

CIC: moving into

AES managed a portfolio of thermal and renewable fuel sources able to provide energy in 29 countries, as of December 2008. The value of the firm’s assets under management at that time was more than $35 billion, according to its website.

Shares in AES remained unchanged at $14.15, at the time of press, reflecting a market capitalisation of $9.44 billion.

Last week CIC, which currently manages approximately $298 billion, told Reuters the company was seeking to invest in minority stakes in infrastructure and environmentally friendly energy projects.