Power play

13 August 2010 By Christopher Swann

Don t be fooled by the 62 pct premium. Blackstone is getting the highly geared fallen giant for a bargain at $4.7 bln. The buyout firm has timed this sector well before. Given the high price of coal and the low price of electricity, in time it may deliver a repeat performance.

This content is for Subscribers only

Context News

Dynegy, a power producer, said on Aug. 13 it had agreed to be acquired by private equity firm Blackstone Group for $543 million. Including debt, the deal values Dynegy at $4.7 billion, making it one of the largest private equity acquisitions this year.

Dynegy shareholders will receive $4.50 cash a share, a 62 percent premium over Dynegy's closing price on Aug. 12, under terms of the deal. Dynegy shares had been trading at an eightyear low.

As part of the transaction, Blackstone has arranged to sell four natural gasfired assets owned by Dynegy to NRG Energy for $1.4 billion.

Email a friend

Please complete the form below.

Required fields *