Back to top

Analyst Blog

Zacks Equity Research

Talen Energy Stockholders Approve Takeover by Riverstone

EXC WR GXP TLN

Trades from $3

Shareholders of energy and power generation company Talen Energy Corporation (TLN - Free Report) have recently approved the proposed acquisition of the company by Riverstone Holdings LLC, a private investment firm.

Under the deal, Riverstone will purchase Talen’s stock for $14 a share (56% premium to the closing price of $9.00 per share on Mar 31, 2016). The transaction has a total enterprise value of approximately $5.2 billion and Riverstone will own 35% the shares of the company.

Pending Approvals

The merger is yet to be approved by a number of regulatory commissions. These regulatory bodies includethe Federal Energy Regulatory Commission and the Nuclear Regulatory Commission, though the companies have been granted the termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act.

On Sep 19, the New York Public Service Commission approved the transaction as it pertains to Talen Energy’s operation of Athens power plant. Subject to regulatory approvals and customary conditions, the transaction is slated to close by the end of 2016.

TALEN ENERGY CP Price

Similar Move by a Peer

On Sep 26, shareholders of Great Plains Energy Incorporated (GXP - Free Report) and Westar Energy, Inc. (WR - Free Report) approved the pending merger-related proposals, thereby paving the way for the completing the transaction in the spring of 2017.

The merger, reportedly valued at $12.2 billion, includes about $8.6 billion in total stock and cash consideration and $3.6 billion of Westar Energy’s debt.

Meanwhile, in Mar 2016, Exelon Corporation (EXC - Free Report) and Pepco Holdings Inc. completed their merger. The merger combined three of Exelon's electric and gas utilities – BGE, ComEd and PECO – with three of Pepco’s electric and gas utilities – Atlantic City Electric, Delmarva Power and Pepco – to create the leading mid-Atlantic electric and gas utility company.

Confidential from Zacks

Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>