Boston, MA 08/25/2014 (wallstreetpr) – Dynegy Inc. (NYSE:DYN) recently agreed to acquire Duke Energy Corp (NYSE:DUK) power plants in a deal worth $6.25 billion. Along with the power plants from Duke, Dynegy also agreed to buy Energy Capital Partners, a private equity company. The transactions indicate that Dynegy is looking forward to take a major leap in capacity generation, just a year less than it emerged from the protection arising out of bankruptcy.
About the Two Deals
In the transaction with Duke, Dynegy Inc. (NYSE:DYN) was represented by White & Case LLP. The adviser to Duke in this deal was Bracewell & Giuliani LLP. In the other transaction with Energy Capital Partners, Dynegy was represented by Meagher & Flom LLP, Slate, Arps and Skadden.
The transaction includes 11 Duke natural gas, oil and coal power plants for $2.8 billion. All these plants are based in Illinois, Pennsylvania and Ohio. Apart from these power plants, Duke’s retail sales business was also acquired by Dynegy.
In the Energy Capital Partners transaction, Dynegy spent $3.45 billion for its plants. These plants are situated in Connecticut and Massachusetts, apart from Pennsylvania, Illinois and Ohio.
Duke’s Divestment Plan
Duke Energy Corp (NYSE:DUK) is among various utility owners who are looking forward to divest the companies from power plants. It must be noted that all these power plants compete for suitable and potential buyer in the wholesale markets, rather than expecting returns from units for which regulated prices are being paid by the customers.
Dynegy’s Bankruptcy Protection coming to an End
With such acquisition and transactions, Dynegy Inc. (NYSE:DYN)’s bankruptcy spell, it seems is coming to an end. The last of all subsidiaries of the company came out of the spell of bankruptcy protection last year in November. This happened because of falling down of wholesale electricity prices, which were responsible for drawing years of losses for autonomous producers of power and energy.
