Tags: NRG Energy | GenOn Energy | stock | deal

NRG Energy to Buy GenOn in $1.7 Billion Stock Deal

Sunday, 22 July 2012 02:48 PM

NRG Energy says it reached an agreement to buy power provider GenOn in an all-stock deal worth about $1.7 billion.

Under the terms of the deal, GenOn Energy Inc. shareholders will get 0.1216 of a NRG Energy Inc. share for each of their GenOn shares.

Based on NRG's Friday closing stock price, the offer equates to about $2.20 per GenOn share. That represents about an 18 percent premium over Houston-based GenOn's Friday closing stock price.

Once the deal closes, Princeton, N.J.-based NRG says its shareholders will own 71 percent of the combined company and GenOn shareholders will own 29 percent.

NRG says the acquisition allow it to cut costs, while boosting efficiency and free cash flow.

The deal is expected to close by the first quarter of 2013.

© Copyright 2019 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

1Like our page
Sunday, 22 July 2012 02:48 PM
Newsmax Media, Inc.

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

© Newsmax Media, Inc.
All Rights Reserved