Blackstone to Acquire Dynergy

Saturday, 14 August 2010 15:37

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Dynegy Inc. announced it will be acquired by an affiliate of The Blackstone Group L.P. The deal is valued at approximately $4.7 billion, which includes the assumption of existing debt. Under the terms of the merger agreement, Dynegy stockholders will receive $4.50 in cash for each outstanding share of Dynegy common stock they own.

A special meeting of Dynegy’s stockholders will be held following the filing of a proxy statement with the Securities and Exchange Commission. Under the merger agreement, Dynegy is permitted to solicit alternative proposals from third parties for a period of 40 days after the date of the merger agreement. The transaction is expected to close by the end of 2010.

Bruce A. Williamson, Chairman, President and Chief Executive Officer of Dynegy Inc., says the company’s Board of Directors “believes the proposed transaction with Blackstone provides our stockholders with a significant premium over the current stock price and removes the risks to the existing stockholders associated with volatile commodity prices, challenging capital markets and environmental and regulatory uncertainties. Blackstone is a world-class firm with substantial resources and investment experience in the power generation business, and we believe they are well positioned to lead Dynegy going forward as a private company.”

Blackstone Senior Managing Director, said David Foley, adds, “We share Dynegy’s commitment to safety, operational reliability and environmental responsibility. We look forward to working together with Dynegy’s employees to realize the full potential of the company’s attractive portfolio of power generation assets.”

In a separate agreement with Blackstone, NRG Energy will acquire four natural gas-fired assets currently owned by Dynegy – the Casco Bay facility in Maine and in California facilities at Moss Landing, Morro Bay and Oakland – for approximately $1.36 billion. The closure of the merger between Dynegy and Blackstone is contingent upon the concurrent closing of the Blackstone and NRG Energy transaction.

Blackstone is one of the world’s leading investment and advisory firms. Further information is available at www.blackstone.com.