AES, a key energy partner to tech giants like Meta, Amazon, and Microsoft, saw shares surge by nearly 20%. Private equity firms, including Brookfield and BlackRock, are interested in a potential buyout due to AES’s partnerships with data center operators and renewable energy commitments. Despite a recent stock decline, a buyout could yield substantial gains for shareholders.

Private equity firms typically pay a premium to acquire public companies, with an average premium of 52% in 2023. Rumors of a potential AES buyout highlight the opportunity for shareholders to benefit from significant gains. While the likelihood of a deal remains uncertain, the potential for substantial returns is evident.

AES’s enterprise value of approximately $40 billion, including debt, poses a challenge for any potential private equity buyout. However, with private equity firms holding trillions in “dry powder” waiting to be invested, the possibility of a deal remains. Earnings reports from BlackRock and Brookfield could shed light on the likelihood of AES being acquired.

Read more at Nasdaq: AES Gains 20% as Private Equity Eyes AI Hyperscale Energy Player