US power firm eyeing to sell China assets

AES Corp  is looking to sell all or some of its assetsin China, according to three sources familiar with the process.

The company, which has a market value of around $10.5 billion, has recently hired an investment bank to kick off the process. A sale or sales could potentially be worth $300-$400 million.

AES is the first U.S. power producer to enter China about two decades ago, but it is hobbled by not being able to pass on higher coal costs in a state-regulated industry.

The likely exit, or scaling down, underscores the challenging operating environment in China's power industry, where coal-fired power producers have little control over electricity prices, which are set by the state.

For the source of this story, click here.