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AES To Buy IPALCO in Power Merger

July 17, 2000

INDIANAPOLIS (AP) _ AES Corp. plans to buy IPALCO Enterprises Inc. in a stock swap worth $2.15 billion, plus the assumption of $890 million in debt and preferred stock.

IPALCO is an Indianapolis-based utility holding company that owns Indianapolis Power & Light, which provides retail electric service to 433,000 customers in central Indiana.

AES, based in Arlington, Va., operates generation, distribution and supply businesses across the world, including the U.S., Australia, Bangladesh, Canada and Mexico.

Under the deal announced Monday, each share of IPALCO will be swapped for $25 worth of AES stock. Based on recent trading prices, AES would be issuing about 43 million shares.

IPALCO stock was up 5 percent, or $1.125 at $22.625 per share on the New York Stock Exchange, where AES was trading up $3.625, or 7.2 percent, at $54.

Once the deal is approved, IPALCO will become a wholly owned subsidiary of AES and will maintain its headquarters in Indianapolis.

IPALCO, which has about 1,900 employees, had 1999 profits of $129 million sales of $835 million. AES, which empoys more than 14,000, earned $328 million on 1999 sales of $3.3 billion.

``We plan to further develop the solid foundation of customer service and community involvement IPALCO has built over the years,″ Dennis W. Bakke, president and chief executive officer of AES, said in a statement.

John R. Hodowal, IPALCO chairman and chief executive officer, said AES’s global experience and resources will allow IPALCO to offer better service and more competitive prices.

The transaction, which is expected to close early next year, is subject to the approval by IPALCO shareholders and regulators.

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