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The acquisition "is not expected to impact customer rates," according to AES, but some are skeptical.
Ned Oliver / Virginia MercuryAES, the parent company of AES Indiana, announced on Monday that it has agreed to be purchased for more than $33 billion by a group of large domestic and foreign investors — and could go private as soon as this year. The news prompted alarm from some Hoosier leaders.
The buyers include BlackRock subsidiary Global Infrastructure Partners, headquartered in New York, and Swedish EQT’s Infrastructure VI fund. They are joined by two underwriters: the California Public Employees’ Retirement System and the Qatar Investment Authority, which is that nation’s sovereign wealth fund.
They and AES have entered into a definitive agreement for $15 in cash per share — a total equity value of $10.7 billion and an enterprise value of about $33.4 billion, according to a news release.
The deal is expected to close in late 2026 or early 2027.
“We believe this transaction maximizes value for existing stockholders and positions the Company for long-term success as we continue delivering on our commitments to customers, communities and people,” said AES President and CEO Andrés Gluski.
AES Board of Directors Chair Jay Morse said that without a deal, the company would’ve likely had to reduce or eliminate the dividend, “and/or” substantial new equity issuances for stockholders.
The buyers’ support will improve access to the capital AES needs to invest in energy infrastructure, the news release said.
“AES’ electric utilities in Indiana and Ohio are experiencing significant demand growth and remain focused on maintaining reliable service and affordable rates for all customers,” the company asserted. “As a private company, AES will continue to invest prudently in utility assets to meet the growing energy needs of all 1.1 million customers.”
AES Indiana is, for now, one of the state’s “big five” investor-owned electric utilities. It serves more than 500,000 retail customers in Indianapolis and surrounding areas, with an exclusive service territory of about 530 square miles. That’s according to an integrated resource plan submitted last year to state regulators.
AES Indiana and AES Ohio will remain “locally operated and managed” regulated utilities — and, according to the company, the acquisition “is not expected to impact customer rates.”
Indianapolis Democrats condemned the buyout.
“I’m very concerned that AES’s move toward private ownership will hurt Hoosiers,” said U.S. Congressman André Carson. “Private firms having a stake in public utilities – an essential service – will put profits over people.”
State Rep. Cherrish Pryor said AES “conveniently” made the announcement just after Friday’s conclusion of the 2026 legislative session “to dodge efforts” regulating or blocking such sales.
“AES has continued to put shareholders’ profits above the needs of working families. Selling to private equity will only make it worse,” she said in a news release. She feared the deal would allow her constituents to be “exploited” and “set a dangerous precedent statewide.”
Indiana Capital Chronicle is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Indiana Capital Chronicle maintains editorial independence. Contact Editor Niki Kelly for questions: info@indianacapitalchronicle.com
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