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Vistra in talks to buy Dynegy: WSJ
Posted on Friday, 19 May 2017 14:30
Texan energy company Vistra has made an approach to acquire local peer Dynegy, according to the Wall Street Journal, citing people with knowledge of the situation.
The sources said initial discussions between the parties are underway.
However, they declined to give any financial details of the proposed transaction and cautioned that there is no guarantee of an agreement being reached.
None of the parties have commented on the report as yet.
If Vistra is successful in its bid to acquire New York-listed Dynegy the deal could be worth USD 919.42 million, based on the target’s closing share price of USD 7.00 on 17th May, the last trading day prior to the WSJ’s report.
Stock was trading up at 9.23 as of 15:03 (BST) on 19th May, following news of the proposed transaction.
Dynegy is active throughout the Northeast, Mid-Atlantic and Midwest regions, as well as in Texas, and operates facilities capable of generating more than 31,000 megawatts of electricity, which equates to enough energy to power 25.00 million family homes in the US.
The company also trades under the Homefield Energy banner and serves residential, municipal, business and industrial customers.
It employs 2,853 people.
Dynegy posted revenue of USD 1.25 billion for the three months to 31st March 2017, up from USD 1.12 billion during the same timeframe in the previous year.
The firm generated an operating loss of USD 49.00 million over the three months, compared to operating income of USD 145.00 million in Q1 2016.
Dynegy has already been targeted once this year, having agreed to offload its Armstrong and Troy peaking generation power plants to LS Power Equity Partners for USD 480.00 million back in February.
The group’s most recent acquisition closed in June 2016, when it picked up the remaining 35.0 per cent stake it did not already own in US fossil energy power plant operator Atlas Power from Energy Capital Partners for USD 750.00 million.
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