Why Is AES Stock Falling Today?

• The company stated that the transaction will take the company private, providing greater financial flexibility.
• AES Chairman Jay Morse said that without the deal with the consortium, AES would have had to either reduce or eliminate dividends, issue substantial new equity, or both.
• The transaction is expected to close in late 2026 or early 2027, following which AES will stop trading on the New York Stock Exchange.

Shares of AES Corp. (AES) fell more than 18% in Monday’s pre-market trade after the company entered into a definitive agreement to be acquired by a consortium led by BlackRock Inc.’s (BLK) Global Infrastructure Partners and EQT.

As part of the deal, AES shareholders will receive $15 per share in cash, representing a total equity value of $10.7 billion and an enterprise value of approximately $33.4 billion, the company said.

Retail sentiment on Stocktwits around AES trended in the ‘extremely bullish’ territory, with message volumes at ‘extremely high’ levels.

AES To Go Private

AES said the transaction will take the company private, providing greater financial flexibility. The consortium led by GIP and EQT will support business continuity while maintaining an investment-grade profile.

“AES has a significant need for capital to support growth beyond 2027, particularly given the significant new investments in both US generation and utilities businesses,” said AES Chairman Jay Morse. He added that without the deal with the consortium, AES would have had to either reduce or eliminate dividends, issue substantial new equity, or both.

However, the company expects to continue paying dividends to AES’s existing shareholders until the transaction with the consortium closes.

AES said that its electric utilities in Indiana and Ohio are “experiencing significant demand growth.”

The transaction is expected to close in late 2026 or early 2027, following which AES will stop trading on the New York Stock Exchange.

AES Cancels Q4 Earnings Call

AES also stated that, in light of Monday’s announcement, the company has cancelled the fourth-quarter (Q4) earnings call, which was rescheduled for Tuesday.

Instead, AES will file its annual report with the U.S. Securities and Exchange Commission on Form 10-K on Monday.

AES is based in Arlington County, Virginia, and is one of the world’s leading power companies, generating and distributing electric power in 15 countries. It has over 10,000 employees and was founded in 1981 as Applied Electric Services Inc. The company serves about 1.1 million customers and said that its Indiana and Ohio operations will remain locally operated and managed regulated utilities.

AES stock is up 21% year-to-date and 66% over the past 12 months.

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