The Blackstone Group will acquire Dynegy and take the company private.
It's not really a leveraged buyout (LBO), but more of a LBOJV, meaning a combination leveraged buyout/joint venture transaction.
Earlier this week Dynegy was down 22 percent, but now the stock will be up very sharply with the $4.50 per share in cash deal from Blackstone, which represents a 62 percent premium to the closing share price on August 12. The total value of the deal is $4.7 billion—this includes existing debt.
At one time the name Dynegy meant a multi-billion dollar market cap company, one that competed with the likes of Enron. Prior to Enron imploding, Dynegy was in a deal to buy some of the company.
Dynegy does have a "go-shop" of 40 days to solicit alternative proposals, which more than likely won't mean anything.
Also, in a separate deal with Blackstone, NRG Energy will acquire four of Dynegy's natural gas assets.
- Blackstone Strikes Dynegy LBO, Sells Plants to NRG
- Dynegy to be Aquired by Blackstone for $542.7M
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