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Dynegy to buy power-generation assets

Reported by AAP
Saturday, August 23, 2014
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Electricity company Dynegy said Friday that it would nearly double its power-generation capacity through a pair of acquisitions with Duke Energy and Energy Capital Partners worth $US6.25 billion ($A6.76 billion).

Under the deals, Dynegy will buy coal and gas generation assets from Duke and ECP totalling 12,500 megawatts, taking the company's total capacity to almost 26,000 megawatts.

Dynegy said the deals would enhance its competitive position in the New England region and the PJM regional market, which covers 13 states in the Mid-Atlantic and the Midwest plus the federal capital of Washington.

"The addition of these portfolios transforms Dynegy by adding considerable scale in the PJM and New England markets," said Dynegy chief executive Robert Flexon.

The deal also "is forecasted to significantly improve our financial outlook," he added.

Dynegy will pick up 10 plants from Duke and another 10 facilities from ECP. It will also acquire retail electricity businesses in Illinois, Ohio, Pennsylvania and Michigan.

Dynegy will finance the deals through a combination of debt and equity, including the issuance of $200 million in common Dynegy shares to ECP.

Duke said the deal is part of an effort begun in February 2014 to exit its Midwest commercial generation business. Marc Manly, president of Duke Energy's commercial businesses, called the transaction an "important milestone" in its makeover.

Dynegy shares rose 15.5 per cent to $US34.23 in opening trade, while Duke advanced 0.8 per cent to $US73.64.

25/11/2014 00:48Sydney, Australia. 25 November,2014
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